U.S. Stock Diary | The three indexes continue to rise but are limited by rising bond interest rates (Michael M. Santiago via Getty Images)
Wall Street indexes continued to rise across the board, with the Nasdaq recording seven consecutive days of gains for the first time since January, and the Dow and S&P 500 also rising for six consecutive days. The three major indexes fell briefly after opening higher, but found support at the end of the market and finally closed higher. The bond market went down, with the 10-year government bond interest rate rising by more than 10 basis points, limiting the gains in the stock market. Some market participants pointed out that the sharp drop in bond interest rates last week was only due to the liquidation of short positions. Goldman Sachs pointed out that hedge funds have also given up selling short positions and entered the market.
Real-time quotations of U.S. stocks and foreign currencies, multi-country news
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Market conditions on November 6 (Monday)
l The Dow Jones index rose 34.54 points, or 0.10%, to 34,095.86 points.
l The S&P 500 index rose 7.64 points, or 0.18%, to 4,365.98 points.
l The Nasdaq index rose 40.50 points or 0.30% to 13,518.78 points.
l New York oil futures for December delivery closed at US$80.82 a barrel, up US$0.31 or 0.4%.
l New York December gold futures closed at $1,988.6 an ounce, down $10.6, or 0.5%.
l The U.S. 10-year Treasury bond yield closed at 4.662%, up 10.4 points.
A Goldman Sachs report pointed out that hedge funds “aggressively” bought U.S. stocks at the fastest pace in two years last week, with traders piling into the stock market on hopes that the Federal Reserve’s pause in interest rate hikes may continue. Goldman Sachs said that as stock prices rise, the cost of short selling becomes too expensive, leaving short sellers in trouble and losing money.
However, Michael Wilson, investment director at Morgan Stanley, said the S&P 500’s best weekly performance this year was nothing more than a bear market rebound. He said in the report that the stock market lacks technical and fundamental support. Given the bleak earnings outlook, weak macro data and falling analyst expectations, this is more of a bear market rally than the start of a sustained uptick.
“The decline in U.S. Treasury yields is more related to lower-than-expected coupon issuance guidance and weak economic data, rather than being interpreted as market optimism that the Federal Reserve will cut interest rates early next year,” Wilson said.
Chris Senyek, chief investment strategist at Wolfe Research, wrote in a report: “We believe that the sharp rebound in stocks was driven by the unwinding of the U.S. Treasury market, which led to an epic rally in bond prices that spread across all asset classes.” He expects this to be A similar trend will appear in the weekly market, but this trend will not last. He is still bearish on the U.S. economy.
Bostick, president of the Federal Reserve Bank of Asia Pacific, said there are many aspects that affect policy, including the outlook for the job market, tightening of bank credit standards, and productivity improvements. He believes that Fed officials have time to observe changes in economic conditions and remain patient on interest rate policy.
Bostick said, “Financial institutions and bankers are no longer lending as aggressively as before, so this is clear evidence that the U.S. economy is slowing down, and their cautious and second-guessing mentality will not change in the coming months. .”
2023-11-06 22:48:54
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