Wall Street rises, fueled by technology, as Treasury yields calm

Nov 10 (Reuters) – Wall Street’s major indexes ended with big gains on Friday, boosted by heavyweight technology and growth stocks as Treasury yields cooled, while investors looked ahead to next week’s reports on inflation and other economic data.

The Nasdaq Composite Index (.IXIC) posted its biggest single-day rise since May 26.

Stocks rebounded from the previous session’s declines that followed hawkish comments from Federal Reserve Chairman Jerome Powell on interest rates. Thursday’s decline ended the longest winning streak in two years for the S&P 500 and Nasdaq.

Investors are focusing on benchmark Treasury yields, which have retreated somewhat from their highest levels in 16 years, and monetary policy as they evaluate whether the Fed is done raising interest rates to control inflation and when the central bank can begin to do so. Reducing interest rates.

“Interest rates have changed a little bit here and I think that’s one of the reasons we’ve seen that rise over the last couple of weeks,” said Chuck Carlson, CEO of Horizon Investment Services in Hammond, Indiana. “If you think this rally has legs, yesterday gave you an opportunity to buy some stocks today.”

Next week, the CPI report will be closely watched, along with producer price and retail sales data, which will further shape interest rate expectations.

“In general, investors’ expectations are that the inflation data coming in is going to be positive for the market and I think they want to get ahead of it a little bit,” said Rick Meckler, a partner at Cherry Lane Investments in New Vernon. , New Jersey.

The Dow Jones Industrial Average rose 391.16 points, or 1.15%, to 34,283.1 points, the Standard & Poor’s 500 Index gained 67.89 points, or 1.56%, to 4,415.24 points, and the Nasdaq Composite Index gained 276.66 points, or 1.9%. 2.05% to 13798.11.

The Standard & Poor’s 500 index hit its highest closing level since September 19.

All 11 sectors in the S&P 500 finished in positive territory, led by a 2.6% gain for the technology sector (.SPLRCT). Megacap stocks that have pushed the market higher this year also rose strongly on Friday. NVIDIA stock (NVDA.O) rose by about 3%, with Meta Platforms stock (META.O) rising by 2.6%, and Microsoft stock (MSFT.O) rising by 2.5%.

“People look at big tech and say in an environment of higher prices and a slowing economy, these companies are still the best place to be willing to pay a premium for them,” Meckler said.

Over the course of the week, the Dow Jones rose by about 0.7%, the S&P 500 gained by 1.3%, and the Nasdaq rose by 2.4%.

Helping to support stocks, the yield on the benchmark 10-year Treasury note was little changed at 4.62% the day after a jump that was driven in part by a weaker-than-expected 30-year bond auction.

Data on Friday showed US consumer sentiment fell for the fourth straight month in November, and household inflation expectations rose again.

In company news, shares of Illumina (ILMN.O) fell 8% as the genetic testing company cut its full-year earnings forecast for the second straight quarter.

Advancing issues outnumbered declining stocks 2.7 to 1 on the New York Stock Exchange. There were 70 new highs and 152 new lows on the NYSE.

On the Nasdaq, 2,589 advancing issues outnumbered declining stocks by a 1.6-to-1 ratio on the Nasdaq. The Nasdaq index recorded 61 new highs and 353 new lows.

About 10.2 billion shares were traded on U.S. exchanges, compared with a daily average of roughly 11 billion over the past 20 sessions.

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