Treasury yields dropped on Thursday, and investors took a gain in stocks, believing the Federal Reserve may be finished hiking rates by 2023.
With a 1.7% gain and a closing price of 33,839.08, the Dow Jones Industrial Average had its highest day since June. With a gain of 1.89%, the S&P 500 ended the day at 4,317.78, its highest level since April. The S&P 500 had consecutive advances of more than 1% for the first time since February. The Nasdaq Composite had its highest session since July, rising 1.78% to close at 13,294.19.
The S&P 500 is up roughly 4.9% and the Dow is up 4.4% on a weekly basis. A gain of more than 5% is anticipated for the Nasdaq.
All 11 S&P 500 sectors finished the day in positive territory, indicating a broad-based gain. Real estate and energy both saw 3.1% gains, leading the gains.
Bond yields decreased, with the 10-year Treasury yield falling to 4.668%, a decrease of almost 12 basis points. This happens when last month’s benchmark yield crossed 5%.
The labour market was slowing down and inflation was decreasing, according to data released Thursday morning, which gave investors more hope that the Federal Reserve might be done hiking interest rates. According to the Labour Department’s report on Thursday, labour costs surprisingly decreased in the third quarter. Moreover, weekly unemployment claims increased slightly to 217,000.