U.S. Stock Indexes Rise, S&P 500 on Track to Break Losing Streak
In a positive turn of events, U.S. stock indexes are ticking higher on Thursday, with the S&P 500 index on track to break a four-day losing streak. The S&P 500 was up 0.6% in midday trading, erasing an early modest loss. Another drop would send it to its longest losing streak since late October, when it began its run to records.
The Dow Jones Industrial Average also saw gains, up 294 points or 0.8% as of 11 a.m. Eastern time, while the Nasdaq composite was 0.5% higher.
Elevance Health climbed 5.5% after raising its profit forecast for the full year, while homebuilder D.R. Horton rose 3.5% after reporting stronger profit and revenue for the latest quarter than analysts expected.
However, Equifax experienced a 2.8% drop after reporting weaker revenue for the latest quarter than expected, with high interest rates pressuring its mortgage credit inquiry business.
Stocks have been struggling recently as bond market yields rise, putting pressure on investors who have given up hopes for many interest rate cuts from the Federal Reserve this year.
Despite this, reports on Thursday showed the U.S. economy remains stronger than expected, with fewer workers applying for unemployment benefits and growth in manufacturing in the mid-Atlantic region accelerating sharply.
Traders are now forecasting just one or two cuts to rates this year, down from expectations for six or more at the start of the year. In the bond market, the yield on the 10-year Treasury rose to 4.63% from 4.59% late Wednesday.
The hope for a strong economy keeping interest rates high is that it could drive strong growth in profits, with companies needing to deliver such strength to justify the record-setting run stock prices have been on since autumn.
Overall, the positive momentum in the stock market is a welcome change after recent struggles, with investors keeping a close eye on economic data and Fed actions to guide their next moves.
