Stocks continued their upward trajectory in Wednesday trading, as the S&P 500 extended its late-August rally. This marks the largest three-day gain for the benchmark index since March, with investors hopeful that signs of a cooling economy could dissuade the Federal Reserve from raising interest rates again.
Although the S&P 500 is down 1.7% for the month of August, it has gained 2.4% so far this week. In afternoon trading, all three major indexes were making modest moves, with the S&P 500 up approximately 0.3%.
Meanwhile, Treasury yields retreated, with the yield on the 10-year Treasury note at 4.105%, down from 4.121% the previous day. The two-year yield also decreased to 4.867% from 4.888%. On the other hand, German bond yields rose, along with other European bond yields, due to concerns about a eurozone-wide inflation reading scheduled for Thursday.
Bitcoin, the digital currency, saw a slight decline in gains from Tuesday. It had experienced a surge after a court ruling that could potentially lead to the first ETF offering direct bitcoin exposure.
In terms of economic data, the gross domestic product (GDP) for the second quarter was revised slightly lower in the United States.
Oil prices saw a slight increase as investors monitored the path of Hurricane Idalia in the Gulf of Mexico and kept an eye on the aftermath of a coup in Gabon, an OPEC member. U.S. natural-gas prices also rose.
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Overall, Wednesday’s trading session showed positive movement in the stock market, with hopes that the Federal Reserve will take a cautious approach to interest rate hikes.
What were the factors behind the S&P 500’s three-day gain despite a downward trend in August?
Stocks continue to climb as the S&P 500 extends its late-August rally, marking the largest three-day gain since March. Investors are hopeful that signs of a cooling economy may deter the Federal Reserve from raising interest rates again.
Although the S&P 500 is down 1.7% for the month of August, it has gained 2.4% so far this week. In afternoon trading, all three major indexes were making modest moves, with the S&P 500 up approximately 0.3%.
Meanwhile, Treasury yields have retreated, with the 10-year Treasury note yield at 4.105%, down from 4.121% the previous day. The two-year yield also decreased to 4.867% from 4.888%. However, German bond yields and other European bond yields rose due to concerns about a eurozone-wide inflation reading scheduled for Thursday.
Bitcoin, the digital currency, saw a slight decline in gains from Tuesday. It had experienced a surge after a court ruling that could potentially lead to the first ETF offering direct bitcoin exposure.
In terms of economic data, the United States’ gross domestic product (GDP) for the second quarter was revised slightly lower.
Oil prices saw a slight increase as investors monitored the path of Hurricane Idalia in the Gulf of Mexico and watched the aftermath of a coup in Gabon, an OPEC member. U.S. natural gas prices also rose.
To stay informed about market trends, readers can subscribe to free morning and evening newsletters, delivered every weekday.
Overall, Wednesday’s trading session showed positive movement in the stock market, with hopes that the Federal Reserve will take a cautious approach to interest rate hikes.
This is great news for investors as they can continue to ride the wave of the surging stock market.
I’m cautiously optimistic about the continued surge, but I hope the Federal Reserve carefully considers the potential impact of an interest rate hike on the market stability.