Market Snapshot: Dow struggles for direction as stocks attempt to build on longest winning streak in 2 years

by | Nov 8, 2023 | Stock Market

U.S. stocks were trading near unchanged Wednesday, looking for direction amid a rally that’s pushed the S&P 500 index up more than 6% over seven days.What’s happening
The Dow Jones Industrial Average
was off 3 points, or less than 0.1%, at 34,150.

The S&P 500
was virtually flat at 4,377.

The Nasdaq Composite
was off 19 points, or 0.1%, at 13,622.

On Tuesday, the Dow and S&P 500 booked a seventh straight gain, while the Nasdaq rose for an eighth straight day. The S&P 500 and Nasdaq winning streaks were the longest since November 2021.

What’s driving markets The S&P 500 index has risen 6.3% over the course of its winning streak. Much of the propulsion has again come from big technology stocks. The tech-rich Nasdaq Composite is up 8.3% over an eight-day streak, also the best run in two years. Driving the advance was a sharp fall in implied borrowing costs after last week’s Federal Reserve statement, and soft jobs data bolstered hopes that rate cuts could soon be on the horizon, according to Derren Nathan, head of equity research at Hargreaves Lansdown. However, Nathan added: “Stocks may well pause for breath as investors balance the hope for rate cuts with building financial stresses in the economy. And it wouldn’t be the first time it the current cycle of elevated interest rates that the market has been wrong about the timing of the Fed pivot.” A period of consolidation for stocks was understandable given the extent of recent gains and the lack of important macroeconomic news this week, said Tom …

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