On Thursday, Wall Street experienced gains on opening, gradually surpassing the neutral zone after enduring a sell-off earlier in the week. The Dow Jones Industrial Average and the S&P 500 managed to gain 0.1% and 0.2% respectively, while the Nasdaq Composite, buoyed by tech sector gains, led the pack with a 0.2% rise.
The upward momentum faced headwinds from a steady climb in Treasury yields, marking the fourth consecutive day of increases. This development came on the eve of Federal Reserve Chair Jerome Powell’s highly anticipated speech. Notably, the benchmark 10-year yield in the U.S. approached the 5% threshold for the first time in 16 years, while the 2-year yield reached its highest point since 2006. Market observers eagerly awaited cues from the Fed on the possibility of another rate hike this year, as well as potential adjustments to the inflation target rate.
In corporate news, Tesla CEO Elon Musk voiced concerns about the affordability of the company’s electric vehicles for customers, attributing it to escalating borrowing costs. This announcement followed Tesla’s earnings report, which fell short of estimations, prompting an 8% drop in Tesla shares. On a more positive note, streaming giant Netflix saw its shares surge by 14% following a substantial increase in subscribers and the introduction of price hikes. Meanwhile, American Airlines reported record-breaking third-quarter revenue, and AT&T experienced a surge in stock prices after surpassing expectations in new wireless subscribers.
Furthermore, economic indicators unveiled that weekly jobless claims hit their lowest level since January, underscoring the robustness of the U.S. labor market. As Wall Street continues its efforts to recover from mid-week losses, investors will closely monitor developments and eagerly anticipate further insights from Powell’s speech.
In conclusion, Thursday’s resilient performance showcases the ability of Wall Street to rebound from mid-week losses, demonstrating its capacity for gains even in the face of adversity.
Source: Yahoo Finance
