Stocks surged Wednesday as bond yields dipped to a two-month low, and the market’s November rally expanded ahead of the Thanksgiving holiday.
The Dow Jones Industrial Average rose 184.74 points, or 0.53%, to 35,273.03. The S&P 500 increased 0.41% to 4,556.62, and the Nasdaq Composite went up 0.46% to 14,265.86.
Wednesday saw more than half of the stocks on the NYSE rising, indicating a broader market rally. Additionally, the tech-heavy Nasdaq experienced increased participation with 62.9% of its stocks rising. Small- and mid-caps also outperformed, rising 0.7% and 0.6% respectively.
However, the energy sector fell 0.1% after OPEC postponed a meeting on production cuts. This affected companies such as Marathon Oil, EOG Resources, and Devon Energy, which all closed lower.
The 10-year Treasury yield briefly fell to 4.369%, the lowest level since September 22, before slightly recovering to 4.41%. This significant drop comes after the yield had crossed the 5% mark in October for the first time in 16 years.
The Federal Reserve signaled in its latest meeting notes that monetary policy will remain restrictive, giving no indication of cutting interest rates anytime soon.
Chipmaker Nvidia released its latest quarterly results which beat expectations but warned of the impact of export restrictions on China. This caused shares to fall 2.5% on Wednesday.
Tuesday saw the S&P 500 and Nasdaq Composite end a five-day winning streak, as the November rally paused. Nonetheless, the major averages are still on track for monthly gains, with the Nasdaq rallying 11% in November, the Dow advancing nearly 7%, and the S&P 500 up more than 8%.
Charlie Ripley, senior investment strategist at Allianz Investment Management, believes the rally could continue, citing the possibility of a soft landing from the Fed and decreasing inflation. In light of this, he says equities will continue to perform well in 2024.
The New York Stock Exchange will be closed for Thanksgiving and will close early on Friday.
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