As Technology Soars, the S&P 500 Sets Its 25th Record This Year – US Market Wrap

Stocks rose to all-time highs, while bond yields fell as traders priced in two Federal Reserve rate cuts in 2024.

The S&P 500 set its 25th record this year, while the tech-heavy Nasdaq 100 rose 2%. Nvidia, the poster child for the artificial-intelligence frenzy, led a rally in the “Magnificent Seven” megacaps, reaching $3 trillion in value. Apple rose for the eighth consecutive day, its longest winning streak since March 2022. Hewlett Packard Enterprise soared due to strong AI server sales.

Just 48 hours before the US jobs report, a private payrolls reading showed that hiring at companies increased at the slowest rate since the beginning of the year. Meanwhile, the services sector grew the most in nine months, thanks to the largest monthly increase in a measure of business activity since 2021.

The S&P 500 increased by 1.2% to close above 5,350. Treasury 10-year yields fell five basis points, to 4.28%. Swap contracts continued to show bets on the Fed’s first cut in November, and possibly another in December.

The loonie fell after the Bank of Canada became the first Group of Seven central bank to initiate an easing cycle. The euro remained relatively stable, with the European Central Bank expected to begin a rate-cutting cycle ahead of the Fed for the first time on Thursday. The Japanese yen fell nearly 1%. Bitcoin surpassed $71,000.