On Wednesday (Nov 8), US stocks ended nearly flat as traders kept a close eye on Treasury yields and the latest remarks from Federal Reserve officials. The S&P 500 and the Nasdaq Composite had recently reached their longest positive streak in two years.
Speculations are high that the central bank may cut interest rates as soon as May, with the CME Group’s FedWatch Tool estimating a 50% chance of a reduction of at least 25 basis points. Nevertheless, some uncertainty has been created by the comments of several Fed officials over the past few days.
“Everyone knows that the Fed may be done with rate hikes, or there might be one more,” said Jason Ware, chief investment officer at Albion Financial Group. “Investors are waiting to see how yields and economic data develop between now and the end of the year, as this will influence the stock market.”
According to preliminary figures, the S&P 500 rose 4.71 points, or 0.11%, to close at 4,383.09 points, while the Nasdaq Composite added 10.56 points, or 0.08%, to reach 13,650.41. The Dow Jones Industrial Average dropped 39.15 points, or 0.11%, to 34,113.45.
The 10-year Treasury yield fell after the US Treasury auctioned off $40 billion in bonds. Eli Lilly’s shares rose following the US Food and Drug Administration’s approval of its weight loss treatment.
On the other hand, Warner Bros Discovery’s stock price dropped due to Hollywood strikes and a weak advertising market, while Take-Two Interactive Software surged on news of the upcoming trailer for the newest Grand Theft Auto videogame. Lucid Group, an electric vehicle maker, slid after revising its production forecast.