S&P 500 Grabs the Largest Rally since November 2022 – US Market Wrap
Stocks rallied and bonds fell after the latest US labor-market report eased fears of a more pronounced slowdown in the world’s largest economy.
All major groups in the S&P 500 advanced, with the index posting its biggest gain since November 2022 as data showed US initial jobless claims fell the most in nearly a year. As economic concerns eased, Treasuries fell across the curve, with shorter maturities driving the selloff. Bonds held their losses following a disappointing $25 billion sale of 30-year government debt.
Markets have been in a tailspin since last week’s economic data raised concerns that the Fed is waiting too long to cut interest rates from a two-decade high, jeopardizing prospects for a “soft landing.” Those jitters, combined with stretched positioning, disappointing tech earnings, and poor seasonal trends, were among the factors driving volatility.
The S&P 500 increased by 2.3%. The Nasdaq 100, which is heavily weighted in technology, rose 3.1%. The Russell 2000 index of smaller firms rose 2.4%. Nvidia led gains in technology megacaps. Eli Lilly soared on a bullish outlook fuelled by sales of its weight-loss medications.
Treasury 10-year yields increased five basis points to 3.99%. Swap traders further reduced their bets on aggressive Federal Reserve easing in 2024. Cryptocurrencies skyrocketed, as investors returned to riskier assets across financial markets.
