Quiver Quantitative - On Wednesday, both the S&P 500 and the Nasdaq experienced an upswing, prompted by recent data signaling a tempering labor market and a subsequent decrease in U.S. Treasury yields from their recent multi-year zeniths. Specifically, key growth stocks, including Microsoft (NASDAQ:MSFT), Amazon (NASDAQ:AMZN), Nvidia (NVDA), Alphabet (NASDAQ:GOOGL), and Tesla (NASDAQ:TSLA), registered gains ranging from 0.4% to 2.3%. This positive traction came even as the 30-year Treasury yield momentarily surpassed 5% for the first time since August 2007, with the 10-year and five-year yields reaching their peak since the same year. The spotlight now turns to the upcoming release of the non-farm payrolls data.
The market's response to the anticipated Federal interest rate adjustments was also evident. According to the CME's (CME) FedWatch tool, traders estimated over an 81% probability of interest rates remaining static in November and a 64% likelihood for December. By 10:01 a.m. ET, while the Dow Jones Industrial Average noted a slight dip, the S&P 500 and the Nasdaq Composite showcased modest gains. Within the S&P 500 sectors, consumer discretionary stocks emerged as frontrunners with a 1% surge, but energy shares saw a 2.4% decline, largely influenced by dwindling crude prices linked to demand worries.
In further economic data insights, the Composite Purchasing Managers' Index for September by S&P Global was finalized at 50.2, a minute rise from its preliminary estimate of 50.1. In contrast, the U.S. services sector experienced a deceleration in September, marked by new orders plummeting to a nine-month nadir.
In company-specific news, Helen of Troy (HELE) recorded an 8.3% drop post their second-quarter sales and profit report. Additionally, pest-control firm Rollins (ROL) saw a 2.8% dip after Spruce Point Capital Management declared a short position on the company. The day's market movements were characterized by declining issues outnumbering advancing ones on both the NYSE and the Nasdaq.
This article was originally published on Quiver Quantitative