Nasdaq-100 Index Rallies for 14 Straight Weeks on First Day of Trading
The Nasdaq-100 Index continued its impressive streak on Monday, marking the 14th consecutive week that the benchmark for large-cap, nonfinancial stocks traded on the Nasdaq Stock Market has rallied on the first trading day of the week.
According to BTIG chief market technician Jonathan Krinsky, this streak is extraordinarily rare, and even bizarre. The last time the Nasdaq-100 failed to advance on the first day of the week was on June 26. The remarkable string of gains also includes holidays such as Labor Day and Independence Day, which disrupted trading schedules.
Interestingly, despite the strong starts to the week, the Nasdaq-100 has seen only modest overall gains since late June, suggesting that the momentum seen on Mondays is not translating into sustained market performance throughout the week.
“A shopping opportunity is about to emerge in muni bonds,” says Wells Fargo Investment Institute
Wells Fargo Investment Institute has identified a potential buying opportunity in municipal bonds. Although these bonds typically experience a pullback during September and October, there is potential for a rebound as the year comes to a close.
Dorian Jamison, municipal analyst at Wells Fargo, highlighted the negative performance of municipal bonds in September 2022, when returns reached -3.8%, the poorest month of performance since 2018. However, Jamison also noted that in November 2022, municipal bonds recorded a return of 4.7%, the best single month of performance in the same period.
Given this historical pattern, Wells Fargo expects a market pullback in the coming months, which could create a more attractive entry point for investors looking to capitalize on the traditionally favorable technicals of municipal bonds in the final quarter of the year.
Jamison also highlighted specific sectors that have outperformed the broader muni market, including tobacco, transportation, and healthcare.
Stock futures open little changed following surge in 10-year Treasury yield
After seeing the yield on the 10-year Treasury climb to its highest level since 2007, stock futures opened with minimal changes on Monday.
Futures tied to the Dow Jones Industrial Average fell by 4 points, or 0.01%, while S&P 500 futures climbed by 0.03%. Nasdaq 100 futures saw a slight increase of 0.04%.
The stability in stock futures comes after a session that saw significant movement in Treasury yields, underscoring market uncertainty. Investors will continue to closely monitor the impact of rising yields on stock market performance.
Overall, these developments suggest that market participants remain cautious as they navigate the potential implications of various market factors, including the Nasdaq-100’s remarkable streak, the performance of municipal bonds, and fluctuations in Treasury yields.