Nasdaq closes on the rise due to falling yields, Boeing suppresses Dow’s rise Reuters
© Reuters. FILE PHOTO: People walk around the New York Stock Exchange in New York, USA, December 29, 2023. REUTERS/Eduardo Munoz/file photo
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Chuck Mikolajczak
NEW YORK (Reuters) – The Nasdaq posted its first gain of at least 1% in 2024 on Monday as a drop in Treasury yields helped lift large-cap stocks and a plunge in shares of Boeing (NYSE:) kept the Dow industrials higher. Checking.
Megacaps rose this week as Treasury yields fell ahead of inflation and new supplies of government debt, boosting stocks such as Amazon.com (NASDAQ:), up 2.66%, and Alphabet (NASDAQ:), up 2.29%. The benchmark hit a session low of 3.966%.
Additionally, Apple (NASDAQ:) rose 2.42% after the iPhone maker announced its Vision Pro mixed reality device will be available for sale in the United States starting February 2.
Nvidia (NASDAQ:) surged 6.3% and fellow chipmaker Advanced Micro Devices (NASDAQ:) surged 5.48%, helping the Philadelphia SE Semiconductor Index rise 3.28%, rebounding from last week’s 5.8% decline. This is the largest weekly percentage decline since. October 2022.
“This is clearly a yield-driven market and investors are trying to discount the timing and frequency of rate cuts and the timing and size of rate cuts,” said Bill Merz, head of capital markets research at U.S. Bank Wealth. Management in Minneapolis.
“Now we’re probably in a more reasonable position in terms of returns. There’s a question of whether the market is going in the right direction, are yields falling for the right reasons or are they falling for the wrong reasons? And investors are concerned about the yields they’ve had so far. “It’s falling for all the right reasons in that the Fed has had a soft landing so far,” he said.
It closed at 37,683.01, up 216.90 points (0.58%), 4,763.54, up 66.30 points (1.41%), and 14,843.77, up 319.70 points (2.20%).
The gains for the Nasdaq and S&P 500 were the first daily percentage gains above 1% since December 21 and the largest daily percentage gains since November 14.
Meanwhile, Boeing shares plunged 8.03% on Monday after the plane maker and U.S. regulators authorized airlines to inspect a 737 MAX 9 operated by Alaska Airlines that grounded after a panel exploded mid-flight. A passenger plane lands on the weekend.
The S&P 500 Energy Index was the only S&P 500 sector to decline after hitting its lowest point in a month as crude oil prices fell about 4% due to sharp price cuts by top exporter Saudi Arabia and increased production by OPEC.
On Friday, the benchmark S&P 500 recorded its ninth straight week of gains as mixed economic data on the labor market and services sector lowered expectations for the Federal Reserve to cut interest rates this year.
Atlanta Federal Reserve President Rafael Bostic said Monday that the central bank’s twin goals of lowering inflation and maintaining low unemployment are not yet in conflict.
According to CME’s FedWatch Tool, money markets now have a 63.8% chance of a rate cut of at least 25 basis points in March, down from 88.5% a week ago.
Investors will be watching inflation data this week in the form of the Consumer Price Index (CPI) and Producer Price Index (PPI) to form expectations about the Fed’s interest rate path.
On the NYSE, advancing stocks outnumbered declining ones by a 3:1 ratio, and on the Nasdaq, advancing stocks outnumbered declining ones by a 2.3:1 ratio.
The S&P 500 recorded 13 new 52-week highs, while the Nasdaq recorded 101 new lows and 92 new lows.
