The S&P 500 and Nasdaq continued their winning streaks as investors analyzed recent comments from Federal Reserve officials and monitored Treasury yields. The decline in Treasury yields has contributed to a stock rally, with the S&P 500 and Nasdaq experiencing their longest streaks of gains in two years. Market expectations now indicate a 50% chance of a rate cut in May. However, uncertainty remains as some central bank officials have left the possibility of additional rate hikes open. Investors are closely watching yields and economic data to determine the future direction of the market.
The Dow Jones Industrial Average fell, ending its seven-session winning streak. Fed Chair Jerome Powell did not comment on monetary policy during a conference, and longer-dated yields decreased after an acceptable $40 billion auction. Eli Lilly shares rose after the FDA approved the company’s weight loss treatment. Warner Bros Discovery saw a significant drop in its stock price due to concerns about Hollywood strikes and a weak advertising market. Take-Two Interactive Software experienced a jump in its stock price after announcing the release of a trailer for its new “Grand Theft Auto” videogame. Lucid Group stumbled after reducing its production forecast.
Declining issues outnumbered advancers on both the NYSE and Nasdaq. The S&P 500 and Nasdaq recorded new highs, while the Nasdaq also had a significant number of new lows. The volume on U.S. exchanges was slightly lower than the average for the past 20 trading days.
Overall, the market remains focused on the path of interest rates, Treasury yields, and economic data. The outcome of these factors will determine the future direction of the market.
Have a tip we should know? email@example.com