U.S. Stocks Rally for the Week While Treasury Yields Pull Back

U.S. stocks finished higher on Friday, shaking off some of their recent weakness, while Treasury yields pulled back from key levels.[0] Wall Street’s major indices were also on track to end higher for the week, rallying after putting up their worst weekly performance of the new year.[1] The Dow Jones Industrial Average added 1.2% to 33,391, the S&P 500 lifted 1.6% to 4,045.7, and the Nasdaq Composite gained 2% to 11,689.

In the bond markets, United States 10-Year rates were at 3.956%, down -1.68%.[2] The Nasdaq increased by 2.0%, finishing at 11,689, while the S&P 500 rose 1.6%, settling at 4,045. The Dow also climbed 1.2%, concluding at 33,390. For the week, the indexes rose from 1.7% to 2.6%, with the S&P 500 having its first weekly victory since February 3rd and the Dow its first since January 27th.[3]

In single-stock news, shares of C3.ai (AI) shot up 33.7% after earnings.[4] For the third quarter of its fiscal year, the enterprise AI software firm posted a loss of 6 cents per share, which was smaller than expected, along with revenue of $66.7 million, which was higher than anticipated.[3] C3.ai provided an optimistic outlook for their revenue in the present quarter.[3] Tesla (TSLA) stock fell 5.9% after the electric vehicle maker unveiled its “Master Plan 3” at last night’s Investor Day.[5] Meanwhile, Snowflake (SNOW) tumbled 9% after its earnings report included a revenue outlook well below expectations.[6] On the other hand, Salesforce (CRM) surged 15% after the cloud-based business-software giant reported upbeat Q4 results and gave a strong Q1 and FY24 sales forecast.[6]

Raphael Bostic, President of the Federal Reserve Bank of Atlanta, expressed his preference for “steady” quarter-point rate hikes on Thursday, in order to minimize the threat posed to the economy. He noted that the repercussions of the increased rates may not become evident until springtime.[7] Bostic mentioned that the Fed could potentially halt the rate hikes sometime between mid-summer and late-summer.[8] He simultaneously cautioned that if inflation numbers exceeded expectations, it could impact Federal Reserve policy.[7]

0. “Stock market news today: Stocks rise to start busy week” Yahoo Canada Finance, 6 Mar. 2023, https://ca.finance.yahoo.com/news/stock-market-news-live-updates-march-6-2023-123642397.html

1. “Nasdaq, S&P, Dow climb as yields retreat; stocks heading for weekly gains (SP500)” Seeking Alpha, 3 Mar. 2023, https://seekingalpha.com/news/3943944-nasdaq-sp500-dow-jones-stock-market-services-data-earnings

2. “Stocks Mixed Before The Open As Bond Yields Tick Higher On Fed Concerns, ECB Minutes In Focus” Barchart, 2 Mar. 2023, https://www.barchart.com/story/news/14699726/stocks-mixed-before-the-open-as-bond-yields-tick-higher-on-fed-concerns-ecb-minutes-in-focus

3. “Stock Market Today: S&P 500 Snaps Weekly Losing Streak” Kiplinger’s Personal Finance, 3 Mar. 2023, https://www.kiplinger.com/investing/stocks/stock-market-today-030323-sandp-500-snaps-weekly-losing-streak

4. “Dow Jones Indexes Rise On Strong Business Activity; AI Stock Surges After Earnings; Tesla’s China Deliveries Up” Investor’s Business Daily, 3 Mar. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-other-indexes-strengthen-in-afternoon-trading-this-index-outperforms-market

5. “Dow Jones Rises As 10-Year Yield Tops 4%; Tesla Plunges 8% On Disappointing Investor Day” Investor’s Business Daily, 2 Mar. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-futures-climb-ahead-of-jobless-claims-tesla-dives-on-disappointing-investor-day/

6. “Stock Market Rally Rebounds Despite Rising Yields; Salesforce, Tesla In Focus: Weekly Review | Investor’s Business …” Investor’s Business Daily, 3 Mar. 2023, https://www.investors.com/news/stock-market-rally-rebounds-despite-rising-yields-tesla-salesforce/

7. “Stock Index Futures Move Higher As Dovish Fed Comments Boost Hopes Of Fed Pivot” Barchart, 3 Mar. 2023, https://www.barchart.com/story/news/14739365/stock-index-futures-move-higher-as-dovish-fed-comments-boost-hopes-of-fed-pivot

8. “Dow Jones Rallies As Tesla Dives, Leads ‘Race To The Bottom’; Warren Buffett Stock Craters” Investor’s Business Daily, 2 Mar. 2023, https://www.investors.com/market-trend/stock-market-today/dow-jones-gains-tesla-stock-dives-leads-race-to-the-bottom-warren-buffett-stock-craters-elon-musk