The S&P 500 Extended Winning Streak, Hits Highest Point in Two Years
The S&P 500 continued its winning streak on Tuesday, putting the index on pace for its longest winning streak in roughly two years. Wall Street looked to build on November’s rally as the S&P rose for a seventh consecutive day for the first time since November 2021. The Dow Jones Industrial Average also added 80 points, or 0.24%, and the Nasdaq Composite outperformed, rising about 1%.
Technology stocks moved higher as yields pulled back, with the yield on the 10-year Treasury note last trading about 7 basis points lower at 4.595%. Notable gainers included Microsoft, Amazon, and Advanced Micro Devices, all up about 1% each. Datadog also saw a significant increase, with a 28% jump after topping quarterly results and offering a strong outlook.
“I think the market is responding today to lower yields,” said Andrew Slimmon, managing director at Morgan Stanley Investment Management. “We could see some consolidation because of such a strong move last week, but the S&P is only at 4,370, so I still think there’s good upside into year-end.”
Overall, all major averages are on pace for gains, with the Dow up 3.4%, and the S&P and Nasdaq up 4.5% and 6.2%, respectively, so far this month. The November uptick in stocks contrasts with a weak October, which saw the S&P 500 slipping into correction territory.
Investors grew optimistic after the Federal Reserve left interest rates unchanged following their meeting last week. Treasury yields slid, and stocks climbed. Wall Street is now awaiting more commentary from central bank speakers, including Federal Reserve Chair Jerome Powell, and quarterly results from Disney, Wynn Resorts, and Occidental Petroleum due out this week.
With the S&P 500 reaching its highest point in two years and the ongoing winning streak, Wall Street remains bullish on the market as it looks to close out the year on a high note.