U.S. stocks have reverted to a cautious stance following the S&P 500’s record close on Thursday. Despite the cautious sentiment, upward momentum seems to persist, with bond yields continuing to decline ahead of the monthly non-farm payrolls report. A stronger-than-expected report could argue against a pause, potentially sparking a negative market reaction.
Technology stocks, particularly chipmakers like Marvell Technology, Inc. (NASDAQ:MRVL) and Broadcom Inc. (NASDAQ:AVGO), are poised to move in sympathy as both companies retreat in response to their earnings.
Cues From Previous Session:
In Thursday’s session, as the market priced in a potential Fed funds rate cut, upward momentum gained traction. Fed Chair Jerome Powell maintained his stance during his testimony on Thursday, contributing to the downward movement in bond yields.
The major averages opened higher and remained above the unchanged line throughout the session, ultimately closing notably higher. While the S&P 500 Index reached a new high, the Nasdaq Composite hit a fresh intraday high before retracing some gains to end slightly below its record high of 16,274.94 set last Friday.
Except for financial and real estate stocks, all sectors closed firmly in the green. Communication services and IT stocks led the charge, with material stocks also seeing significant buying activity.
Index
Performance (+/-)
Value
Nasdaq Composite
+1.51%
16,273.38
S&P 500 Index
+1.03%
5,157.36
Dow Industrials
+0.34%
38,791.35
Russell 2000
+0.81%
2,084.74
Analyst Color:
History paints a positive picture for the market in an election year. LPL Financial Chief Technical Strategist, Adam Turnquist said after Super Tuesday that the market attention now shifts to the election night, with …
Leave a Reply