S&P 500, Nasdaq gain, cheered by Tesla, yield retreat

Reuters

S&P 500, Nasdaq gain, cheered by Tesla, yield retreat

2024 10월 24, 오후 8:24 GMT

<html xmlns="http://www.w3.org/1999/xhtml"><head><title>LIVE MARKETS-S&P 500, Nasdaq gain, cheered by Tesla, yield retreat</title></head><body>

Nasdaq ends up ~0.8%, S&P 500 modestly green, Dow down ~0.3%

Cons Disc leads S&P sector gainers; Materials weakest group

Dollar lower; crude off ~0.4%; gold up; bitcoin up >2%

U.S. 10-Year Treasury yield dips to ~4.21%

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S&P 500, NASDAQ GAIN, CHEERED BY TESLA, YIELD RETREAT

The S&P 500 .SPX and the Nasdaq .IXIC ended higher on Thursday, boosted by a combination of Tesla's TSLA.O surge following upbeat forecasts and a decline U.S. Treasury yields.

The Dow .DJI, however, fell on the day, weighed down by a near 6% drop in IBM IBM.N, after the company missed third-quarter revenue estimates, hurt by weakness in its consulting business as companies cut back on discretionary expenses.

Tesla shares soared 22% on Thursday after forecasting a 20%-30% surge in sales next year, with CEO Elon Musk promising to launch an affordable vehicle in the first half of 2025. He added that efforts to slash production costs boosted margins in the third quarter. Tesla's surge pushed the Nasdaq higher, rising in six of the last seven sessions.

The pullback in U.S. Treasury yields also helped both the S&P 500 and the Nasdaq rally. The benchmark U.S. 10-year yield US10YT=RR fell from three-month highs, as bond investors bought back the note after days of selling it.

Some investors partly attributed the rise in Treasury yields, despite the Federal Reserve in the midst of an easing cycle, to the growing odds of a victory for former President Donald Trump at the upcoming presidential election.

His economic policies are expected to enlarge the U.S. budget deficit, which could lead to more Treasury issuance to finance it.

"The race to the White House is tightening, and while stocks have held up well so far, there's a sense that the market might be underestimating the risks," writes Fawad Razaqzada, market analyst, at City Index and FOREX.com, in emailed comments.

"Investors should remain cautious as the outcome of the election could have far-reaching implications for trade policies, taxes, economic growth, and finally, stocks. So, the S&P 500 outlook is far from certain."

Here is a closing market snapshot:

(Gertrude Chavez-Dreyfuss)

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