U.S. stocks rose sharply, kicking off a short trading holiday week, led by strong gains in technology stocks led by Microsoft and Huida.
The Dow Jones Industrial Average rose 203.76 points, or 0.58%, to 35,151.04. The S&P 500 index rose 33.36 points, or 0.74%, to close at 4547.38; The Nasdaq index closed 159.05 points, or 1.13%, at 14284.53. The Dow Jones Industrial Average and the tech-heavy Nasdaq Composite index rose for the fifth consecutive day.
Microsoft rose 2.05% to a new 52-week high after CEO Satya Nadella announced that former OpenAI CEO Sam Altman would be joining the technology giant and lead a new AI research team.
Chip maker Nvidia also rose 2.28%. The stock closed at a record high ahead of the earnings release after market close on the 21st.
Technology and communication services had the biggest gains on the S&P 500, with gains of 1.5% and 1%, respectively. Palo Alto eWorks rose 5.24% and Intel rose 2.12%. At the same time, Paramount increased by 5.61%, followed by Netflix which increased by 1.84%.
US stocks will be closed on the 23rd due to the Thanksgiving holiday. The 24th will also be a short trading day. Business around the Thanksgiving holiday has been volatile in recent years; But November remains the S&P 500’s best month ever, according to the Stock Trader’s Almanac.
Market bulls remain bullish about the end of the year, especially reassured by last week’s lower-than-expected US inflation datainvestThis eased fears about extremely high prices and offered hopeful signs that the Federal Reserve may stop raising interest rates. After 20 years of strong bond auctions,YieldIts decline continued on the 20th also.
Tom Hanlin, senior investment strategist at Ascent Private Capital Management at Bank of America, said: “One of the factors driving the recent rebound from late October to today is that Treasury yields have declined by about 0.5 percent, which has clearly have significantly supported asset values…”
Certainly, he cited the risk of fiscal spending and deficit issues putting pressure on yields, “so bond markets are still volatile. But so far, low yields have actually supported the prices of those risky assets.” “This will be a focus area in 2024.”
Wall Street will also keep a close eye on the minutes of the latest Federal Reserve meeting to be released on the 21st.
On expectations that the Organization of the Petroleum Exporting Countries (OPEC) may impose production cuts again later this week,oil priceincreased by more than 2%.
Global benchmark Brent crude oil January contract closed at 82.32 yuan a barrel, up 1.71 yuan, or 2.12%; West Texas Intermediate crude oil (WTI) December contract closed at 77.6 yuan a barrel, up 1.71 yuan or 2.25%.
Oil prices have risen for two consecutive sessions, following a sharp selloff last week due to supply and demand concerns.
Traders’ focus is now on whether OPEC and its allies will cut output further at their 26th meeting in response to falling oil prices.
Wolfe Research said Treasury yields could reverse their upward trend by the end of 2023 due to the upcoming auction.