S&P 500 rises Tuesday, but stocks head for third-straight losing month: Live updates
[ad_1]
A trader works on the floor of the New York Stock Exchange on Oct. 20, 2023.
Michael Nagle | Bloomberg | Getty Images
Stocks traded higher Tuesday, as Wall Street tried to close out a dismal month of trading — that saw Treasury yields surge to levels not seen in more than 16 years — on a high note.
The broader index rose 0.4%. The Dow Jones Industrial Average added 59 points, or 0.2%, while the Nasdaq Composite gained 0.3%.
The S&P 500 advance was held in check mainly by communication services stocks, which was one of just two sectors trading in negative territory in afternoon trading. Notably, Alphabet, Meta Platforms and Netflix shares were all lower. Nvidia was down by more than 1%.
The Cboe Volatility Index (VIX) dropped to an 18 handle, below the long-term average of roughly 20. A higher VIX level can point to greater uncertainty in markets.
Earnings season continued Tuesday. Caterpillar slid more than 6% after the construction equipment maker said its fourth-quarter revenue would only be "slightly" higher than the year-ago period. JetBlue shares dropped more than 12% after the airline's third-quarter results missed expectations on the top and bottom lines.
Stocks are headed for their third-straight losing month. The Dow and the S&P 500 are down more than 1% and 2%, respectively. This marks the first three-month losing streak for both indexes since March 2020. The tech-heavy Nasdaq has declined roughly 3% in October, also on pace for its third consecutive negative month.
S&P 500 1-month
October's losses come amid a rapid rise in Treasury yields. This month, the benchmark 10-year U.S. Treasury yield breached the key 5% level for the first time since 2007. Market participants attribute the rise to several factors, including concern the Federal Reserve will keep interest rates higher for longer.
The Fed is set to release its next decision on interest rates on Wednesday. Fed funds futures pricing suggests a roughly 99% probability that the central bank will keep rates at current levels, according to the CME FedWatch Tool.
"If the Fed comes out and says they're probably done for the year, gives hints that they're feeling more dovish, that could be one thing that really helps," said Ross Mayfield, investment strategy analyst at Baird. "But I do think you need some downward pressure on rates to actually get a more sustainable move in stocks."
Historically speaking, November is a strong month for markets, and traders are hoping seasonal tailwinds will be supportive of a year-end rally. However, they expect a peak in bond yields will be needed before they see some relief in the equity market.
Comments
Post a Comment