On November 15, 2023, the U.S. stock markets exhibited a robust performance, closing sharply higher. This surge was driven by a combination of soft inflation data and strong earnings results, fostering investor confidence in equities. The three major stock indexes all ended in positive territory:
- Dow Jones Industrial Average (DJI): The DJI experienced a significant increase of 1.4%, adding 489.83 points to close at 34,827.70. Notably, 25 of the 30 stocks in the index closed positively.
- Nasdaq Composite: This tech-heavy index jumped by 2.4%, gaining 326.64 points to finish at 14,094.38. This rise was attributed to the strong performance of large-cap technology stocks, pushing the index above the crucial 14,000 mark for the first time since early September.
- S&P 500: The broad-market index climbed 1.9% to close at 4,495.70, marking its best daily performance since April. During intraday trading, the S&P 500 even briefly surpassed the key psychological barrier of 4,500.
All 11 sectors of the S&P 500 ended positively, with notable advances in Consumer Discretionary, Utilities, Real Estate, and Materials sectors. The market’s fear gauge, the CBOE Volatility Index (VIX), declined by 4.1% to 14.16. The overall trading volume was slightly above the 20-session average, with advancing issues outnumbering decliners on both the NYSE and Nasdaq.
The positive market reaction is partly attributed to the Consumer Price Index (CPI) data released by the Department of Labor. October’s CPI remained flat month-over-month, lower than the expected 0.1% increase. The core CPI, excluding food and energy, also rose less than expected, suggesting a potential slowdown in inflation. This data led to market speculation that the Federal Reserve might not continue its rate hike cycle, influencing a decline in the yield of the benchmark 10-Year U.S. Treasury Note.
Regarding the bond market, the yield on the 10-Year U.S. Treasury Bond was at 4.45%, experiencing a decrease of 0.092 points or 2.02% on that day. This decline in yield is consistent with the reduced inflation expectations and market speculation about the Federal Reserve’s actions. Over the past year, however, the yield on this bond had increased by 20.89%