Traders work on the floor of the New York Stock Exchange (NYSE) on May 18, 2022 in New York City.
Spencer Platt | Getty Images
The S&P 500 rose on Tuesday, putting the broad index on track for its longest winning streak in about two years, as Wall Street tried to build on November’s rally.
The S&P gained 0.35%, rising for a seventh straight day for the first time since its eight-day winning streak in November 2021. The Dow Jones Industrial Average gained 80 points, or 0.24%. The Nasdaq Composite outperformed, rising about 1%.
Technology stocks rose as yields fell, with the 10-year Treasury yield last trading about 7 basis points lower at 4.595%. Notable gainers included Microsoft, Amazon and Advanced Micro Devices, each recently up about 1%. Datadog rose 28% on one of its best days on record after the company beat quarterly results and offered a strong outlook.
“I think the market is reacting to lower yields today,” said Andrew Slimmon, noting that those moves also contributed to last week’s rally.
“We could see some consolidation due to such a strong move last week, but the S&P is only at 4,370, so I still think there is good upside potential through the end of the year,” the managing director of Morgan Stanley Investment Management added .
Wall Street continues to assess whether last week’s rally can extend after all three indexes completed their best week of 2023. So far this month, all major averages are on track for gains, with the Dow up 3.4%. The S&P and Nasdaq rose 4.5% and 6.2%, respectively.
November’s rise in stocks contrasts with a weak October that saw the S&P 500 slide into correction territory. Investors became more optimistic after the Federal Reserve left interest rates unchanged following its meeting last week. Treasury yields fell and stocks rose.
Elsewhere, Wall Street awaits further comments from central bank spokesmen, including Federal Reserve Chair Jerome Powell. Disney, Wynn Resorts and Occidental Petroleum will report quarterly results this week.