US Stocks Rebound As Treasury Yields, Dollar Fall On Dovish Fed Remarks, Gold Hits $2,040: What’s Driving Markets Tuesday?
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U.S. stocks experienced a welcome resurgence on Tuesday, buoyed by the latest comments from Federal Reserve officials.
Federal Reserve Governor Christopher Waller indicated that if inflation continues its downward trajectory over the next few months, there could be strong economic justification for reducing the policy rate.
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“If inflation consistently declines, there is no reason to insist that rates remain really high,” Waller said.
In a similar vein, Fed Governor Michelle Bowman acknowledged the need for further policy tightening to bring inflation in line with the Fed’s target.
These dovish signals from the Fed officials led to a noticeable decline in Treasury yields. The policy-sensitive two-year yields dropped by 12 basis points, descending to 4.76% — a level last observed in early August. This decrease reflects the market’s reassessment of the interest rate trajectory following the Fed officials’ comments.
The U.S. dollar index, as measured by the Invesco DB USD Index Bullish Fund ETF (NYSE:UUP), fell 0.5%, slipping below the 103 mark.
This downward movement in the dollar index was mirrored by a notable uptick in gold prices. The SPDR Gold Trust (NYSE:GLD) saw a 1.4% increase, reaching $2,040, its highest level since May. Now, it stands just 2% below its all-time highs.
Performance Of US Stock Indices Tuesday
| Index | Performance (+/-) | Value |
| Nasdaq 100 | +0.23% | 16,009.85 |
| S&P 500 Index | +0.29% | 4,563.61 |
| Dow Industrials | +0.45% | 35,492.11 |
| Russell 2000 | +0.01% | 1,801.28 |
- The SPDR S&P 500 ETF Trust (ARCA: SPY) rose 0.28% to $455.77.
- The SPDR Dow Jones Industrial Average ETF (NYSE:DIA) edged 0.5% higher to $354.90.
- The Invesco QQQ Trust (NASDAQ: QQQ) rose 0.27% to $390.17.
- The iShares Russell 2000 ETF (NYSE:IWM) held steady at $178.73, according to Benzinga Pro data.
Chart Of The Day: Gold Prices Eye All-Time Highs
Sector, Industry ETF Performance
The utilities and energy sectors showed the strongest performance in equities, with both the Utilities Select Sector SPDR Fund (NYSE:XLU) and the Energy Select Sector SPDR Fund (NYSE:XLE) posting gains of 0.6%.
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On the other hand, health care lagged behind, as the Health Care Select Sector SPDR Fund (NYSE:XLV) declined by 0.2%.
Among equity industries, gold miners demonstrated significant strength, with the VanEck Gold Miners ETF (NYSE:GDX) surging by 4.4%.
Conversely, biotech, as represented by the SPDR Series Trust SPDR S&P Biotech ETF (NYSE:XBI), underperformed, recording a 0.6% decrease in value.
Latest Economic Data
The Conference Board’s latest report reveals a resurgence in U.S. consumer confidence for November, defying earlier expectations.
The consumer confidence index surged from a downwardly revised 99.1 in October to a reading of 102 in November, according to the latest data released Tuesday. This surpassed market expectations of a 101.6 reading.
Stocks In Focus
- Newmont Corp. (NYSE:NEM) rallied over 5%, marking the best performance among S&P 500 stocks, reflecting rising gold prices.
- PDD Holdings Inc. (NASDAQ:PDD) rallied over 18.4% after reporteding third-quarter earnings of 11.61 Chinese yuan.
- PayPal Holdings Inc. (NASDAQ:PYPL) rose 3.1%.
- Zscaler, Inc. (NASDAQ:ZS) rose less than 1%, in a volatile session, following a double earnings beat.
- GameStop Corp. (NYSE:GME) rose 11% on heavy trading volume Tuesday despite a lack of company-specific news.
- Micron Technology Inc. (NYSE:MU) fell 2.7% despite the company raising its first-quarter outlook, which surpassed estimates.
Commodities, Bonds, Other Global Equity Markets And Crypto
The United States Oil Fund, LP (NYSE:USO), which tracks the performance of light sweet crude, was 2.6% higher.
Gold, as monitored through the SPDR Gold Trust (NYSE:GLD), rose 1.4% to $2,041/oz. Silver rose 1.3% to $24.94.
European equity indices fell. The SPDR DJ Euro STOXX 50 ETF (NYSE:FEZ) edged 0.1% higher.
Bitcoin (CRYPTO: BTC) was 2.7% higher to $38,241, while Ethereum (CRYPTO: ETH) rose 2.3% to $2,072.
Shanthi Rexaline contributed to this report.
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Photo: Shutterstock.
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