Stocks edged higher early Tuesday as Wall Street kicked off what’s expected to be a quiet, holiday-shortened week of trading. The S&P 500 was up 0.3%. The benchmark index is near its all-time high set nearly two years ago following its longest winning streak since 2017.
Quick Read
- Positive Start to Trading Week: Wall Street began a holiday-shortened week with stocks edging higher early Tuesday.
- S&P 500 Growth: The S&P 500 was up 0.3%, nearing its all-time high set nearly two years ago, following its longest winning streak since 2017.
- Dow Jones and Nasdaq Performance: The Dow Jones Industrial Average rose slightly by 53 points, or 0.1%, while the Nasdaq composite increased by 0.4%.
- Technology and Energy Stocks Rise: Gains in technology stocks, like Nvidia, and energy stocks, following a rise in crude oil prices, contributed to the market uplift.
- Bristol Myers Squibb Acquisition: Drugmaker Bristol Myers Squibb announced the acquisition of RayzeBio for $4.1 billion, causing its shares to slip 1%, while RayzeBio’s shares doubled.
- Treasury Yields: Yields were slightly higher, with the 10-year Treasury yield at 3.91% from 3.90%.
- Inflation and Economy Trends: Reports indicating declining inflation and a stronger-than-expected economy have buoyed investor sentiment.
- Federal Reserve’s Interest Rate Strategy: The Federal Reserve aims to balance interest rates to manage inflation without causing a recession. Wall Street anticipates a rate cut by the end of next year, but the Fed’s projections suggest a more conservative approach.
- European Market Closure: European markets remained closed on Tuesday.
- Asian Market Trends: Shanghai’s benchmark led losses in Asia due to selling in technology and chip-related shares. Shenzhen’s A-share index also fell, reflecting concerns over trade tensions and regulatory impacts on the gaming industry.
- Chinese Gaming Industry Reaction: Chinese gaming companies like Tencent and Netease responded to regulatory guidelines with share buybacks, while Beijing supported the industry by approving new games.
The Associated Press has the story:
Wall Street inches higher at the start of a holiday-shortened week
Newslooks- (AP)
Stocks edged higher early Tuesday as Wall Street kicked off what’s expected to be a quiet, holiday-shortened week of trading.
The S&P 500 was up 0.3%. The benchmark index is near its all-time high set nearly two years ago following its longest winning streak since 2017.
The Dow Jones Industrial Average was up 53 points, or 0.1%, at 37,438 as of 10:05 a.m. Eastern. The Nasdaq composite was 0.4% higher.
Gains in technology stocks helped lift the market. Chipmaker Nvidia rose 1.1%.
Energy stocks climbed along with crude oil prices. Hess rose 1%.
Drugmaker Bristol Myers Squibb said Tuesday that it will acquire RayzeBio in a $4.1 billion deal, just days after buying Karuna Therapeutics for $14 billion. Bristol Myers shares slipped 1%, while RayzeBio doubled to $61.38, close to the $62.50 that each share will fetch in its acquisition.
Treasury yields were slightly higher. The yield on the 10-year Treasury was at 3.91% from 3.90% late Friday.
Wall Street is coming off its eighth straight winning week. Investors have been encouraged by reports showing inflation is on the decline even as the economy appears stronger than expected.
The Federal Reserve is walking a tightrope, seeking to slow the economy enough through elevated interest rates to cool inflation, but not so much that it tips the nation into recession.
Traders are still largely betting the Federal Reserve will cut its main interest rate by at least 1.50 percentage points by the end of next year, according to data from CME Group. The federal funds rate is currently sitting within a range of 5.25% to 5.50% at its highest level in more than two decades.
The Federal Reserve released projections earlier this month showing its typical policymaker expects to cut the federal funds rate several times next year, but likely by only half as much as what Wall Street is expecting.
But many see too much optimism over the pace of interest rate cuts early in the year, and that the big run for stocks since late October on anticipation of such support may be overdone.
European markets remained closed Tuesday.
Shanghai’s benchmark led losses in Asia on heavy selling of technology and computer chip-related shares as worries revived over trade tensions with the U.S. and other western countries.
A number of video gaming companies announced share buybacks to shore up prices after Chinese regulators issued draft guidelines on Friday that caused shares in game makers like Tencent and Netease to plunge. Hong Kong markets were closed Tuesday, so the impact of an effort by Beijing on Monday to cushion the impact of the new rules by voicing support for the industry and announcing the approval of more than 100 games was unclear.
The Shanghai Composite index sank 0.7%. In Shenzhen, where relatively more high-tech companies are listed, the A-share index lost 1.2%.
