The stock market is once again being influenced by the rise of artificial intelligence, as the S&P 500 experiences its best three-week stretch since 2020. The AI boom, which had been driving the market for much of the year, had slowed down during the summer due to surging Treasury yields. However, recent weeks have seen a resurgence in big tech stocks as the cooling inflation has raised hopes that the Federal Reserve’s rate hikes are coming to an end.
Despite the recent positive trend, stocks slipped at the start of Tuesday, with the S&P 500, Nasdaq Composite, and the Dow industrials all starting the day in the red. Trading activity was reported to be lighter ahead of the Thanksgiving holiday.
Retail results also had an impact on stock movements, as Lowe’s and Best Buy saw their shares slide, while Dick’s Sporting Goods and Burlington Stores experienced a jump.
Meanwhile, Treasurys remained mostly steady, with the benchmark 10-year yield trading around 4.4%. A strong demand was reported for a 20-year bond auction on Monday.
In other economic news, existing home sales fell to a new 13-year low in October, dropping a surprising 4.1% from the prior month. Nvidia earnings are scheduled for after markets close, and Federal Reserve minutes are due at 2 p.m. ET. Additionally, more Treasury debt will be auctioned, including a two-year note and a 10-year inflation-linked note.