Tech drives gains in stocks as bond yields tumble
BNN Bloomberg
As traders pare their bets on the pace of tightening by the Federal Reserve, attention turns back to corporate earnings and Friday’s jobs report.
As traders pared their bets on the pace of tightening by the Federal Reserve, stocks headed toward another record and Treasury yields tumbled.
Technology and retail shares drove gains in the S&P 500, while the Nasdaq 100 extended its rally into a ninth straight day -- set for the longest winning streak since December. A bullish outlook from chip giant Qualcomm Inc. added to signs the industry crunch is easing. Short-maturity Treasury yields headed for their biggest daily declines this year, led by the U.K. bond market, after the Bank of England defied expectations by keeping interest rates on hold.
“We thought that the extent of market pricing for Fed hikes really around the middle of next year was awfully full, and that should come down,” Mark Cabana, head of U.S. rates strategy at Bank of America Global Research told Bloomberg Television. “It has come down, especially with the Bank of England guidance that we have received.”
Fed Chair Jerome Powell announced a start to a reduction in bond purchases Wednesday, but said officials can be patient on raising rates. Applications for U.S. state unemployment benefits fell last week to the lowest since March 2020, pointing to fewer dismissals amid strong demand for labor. The data precede Friday’s employment report, which is forecast to show nonfarm payrolls rose by 450,000 in October.
