In an effort to start the Thanksgiving holiday on a positive note, traders saw a drop in interest rates on Wednesday, which led to a little increase in stocks.
Gaining 143 points, or 0.4%, was the Dow Jones Industrial Average. S&P 500 increased by 0.5%, while the Nasdaq Composite gained 0.8%.
Up more than 2 basis points to 4.394%, the yield on the 10-year Treasury fell. The 30-year Treasury bond dropped by over 4 basis points to 4.54%, the lowest level since September 22, as all yields declined.
As the explosive November rise paused, the S&P 500 and Nasdaq Composite stopped a five-day winning run on Tuesday. Dow closed down as well.
The Federal Reserve indicated in its most recent meeting notes that monetary policy will stay tight and that there would be no hint of an interest rate reduction in the near future, which prompted such actions.
Following the bell on Tuesday, chipmaker Nvidia released its most recent quarterly earnings. Although the company’s adjusted earnings and revenue during the third quarter of its fiscal year exceeded projections, it cautioned that export limitations from China would negatively impact its fiscal fourth quarter.
Given that Nvidia’s stock has increased by more than 200% this year, some investors may believe the company is overvalued based on the sluggish reaction to the quarterly beat. Nvidia’s stock reached an all-time high this week after crossing the $500 mark for the first time. Tuesday saw a 0.9% decrease to close at $499.44.
Source (CNBC)
