Friday saw a rise in stocks as investors watched Treasury yields following the S&P 500’s eight-day winning streak.
Both the Nasdaq Composite and the S&P 500 increased by 0.4%. By 141 points, or 0.4%, the Dow Jones Industrial Average increased.
Both the benchmark 10-year Treasury yield and the 30-year yield saw a decrease of almost 5 basis points. After Federal Reserve Chair Jerome Powell stated that the bank is “not certain” it has done enough to combat inflation, they increased by more than 10 basis points the previous day. On Thursday, rates were again raised by a weakly attended Treasury auction.
Kevin Simpson, the CEO and chief investment officer of Capital Wealth Planning, stated on CNBC’s “Closing Bell” on Thursday that “the bond market itself is often a lot wiser than the stock market when it comes to projecting rates.”
The investor stated that he is managing his portfolios with the hope that interest rates would continue to be “higher for longer.”
The S&P 500’s 0.8% decline on Thursday ended its longest winning run since 2021. The nine-day winning streak, which was also the longest run of advances the Nasdaq Composite had seen in two years, came to an end when it dropped 0.9%. The 30-stock Dow fell by almost 0.7%.
Source (CNBC)
