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Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., October 26, 2023.
Brendan Mcdermid | Reuters
Stocks rose Friday as traders kept an eye on Treasury yields after the S&P 500 ended an eight-day run of gains.
The S&P 500 climbed 0.4%, along with the Nasdaq Composite. The Dow Jones Industrial Average advanced 141 points, or 0.4%.
The benchmark 10-year Treasury yield and its 30-year counterpart were down about 5 basis points. A day earlier, they jumped more than 10 basis points after Federal Reserve Chair Jerome Powell said the central bank is “not confident” it has done enough in the battle against inflation. A Treasury auction that saw weak demand also lifted yields Thursday.
Still, the economy remains more resilient than expected which has helped equities over a year-to-date period, despite uncertainty toward when the Fed might be done cutting rates according to UBS.
“A continued high level of unfilled job openings and solid private sector balance sheets support our view for a ‘softish’ economic landing,” UBS head of U.S. equities wrote in in a Friday note. “Still, economic growth will likely slow in the months ahead and further improvements in inflation will probably be more incremental.”
Wall Street also parsed fresh consumer sentiment data for November, which showed inflation expectations increased last month. The latest survey from the University of Michigan showed a reading of 60.4, a 5.3% decrease from a month earlier and below a Dow Jones forecast of 63.7.
Trade Desk swooned 18% after the digital ad company offered weak revenue guidance for the fourth quarter. Elsewhere, hydrogen fuel cell company Plug Power cratered 37% on a wider-than-expected third quarter loss and a miss on revenue.
The S&P 500 slipped 0.8% Thursday and snapped its longest winning streak since 2021. The Nasdaq Composite declined by 0.9%, ending a nine-day string of wins — also its lengthiest run of gains in two years. The 30-stock Dow dropped nearly 0.7%.
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