[New York Stock Market] Mixed Close in Narrow Range... Nasdaq Rally Continues for 9 Consecutive Trading Days

The three major indices of the U.S. New York stock market closed mixed and near flat on the 8th (local time), as investors monitored remarks from Federal Reserve (Fed) Chair Jerome Powell and other officials, as well as the decline in Treasury yields. While the Dow Jones Industrial Average, centered on blue-chip stocks, turned downward, the Nasdaq index extended its winning streak to nine consecutive trading days, and the S&P 500 index rose for the eighth consecutive trading day.

At the New York Stock Exchange (NYSE), the Dow closed at 34,112.27, down 40.33 points (0.12%) from the previous session. The large-cap S&P 500 index rose 4.40 points (0.10%) to 4,382.78, and the tech-heavy Nasdaq index gained 10.56 points (0.08%) to close at 13,650.41.

On the day, sectors such as technology, communication, real estate, and materials rose within the S&P 500, while energy, utilities, healthcare, and consumer discretionary sectors declined. Roblox surged nearly 12% after beating expectations with its third-quarter earnings and daily active user numbers. Rivian showed gains in pre-market trading after raising its annual production guidance but fell more than 2% during regular trading hours. Warner Bros. Discovery plunged over 19% due to disappointing earnings and future guidance. Robinhood also dropped over 14% amid a sharp decline in trading volume.

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Investors kept a close eye on Fed officials' remarks and Treasury yield movements amid ongoing corporate earnings reports. The earnings season, which has driven the New York stock market's gains this month, is nearing its end. Approximately 88% of S&P 500 companies that have reported so far have exceeded estimates. Disney, which released its earnings after the market close, posted earnings per share of $0.82, beating market expectations of $0.70. Disney, which closed slightly lower during regular trading, is currently up over 2% in after-hours trading.

Ken Mahoney, CEO of Mahoney Asset Management, commented, "All the big tech companies have already reported earnings. At this point, there probably won't be too many surprises." He added, "The Fed may be operating in a Goldilocks environment?not too hot, not too cold?to raise rates," suggesting that a year-end rally could be possible. Anthony Sagrimbene, Senior Market Strategist at Ameriprise, noted, "The market has been oversold for several months." The S&P 500 has risen 4.5% so far this month.

Chairman Powell said in his opening remarks at a conference that the Fed must have the willingness to think beyond traditional mathematical simulations when forecasting the economy. However, he did not comment on interest rates or economic outlook during this session. John Williams, President of the New York Federal Reserve Bank and considered the third most influential Fed official, also spoke in Washington but refrained from discussing monetary policy or economic forecasts and did not take questions from the audience afterward.

Instead, Powell is expected to express his views on monetary policy challenges during a panel discussion at the research conference the following day. Matt Maley, Chief Market Strategist at Miller Tabak + Co., said, "It would be interesting if he comments on recent long-term interest rate movements," adding, "If his tone is somewhat more hawkish (favoring tighter monetary policy) than before, it could act as a catalyst." Besides Powell, Raphael Bostic, President of the Atlanta Fed, and Tom Barkin, President of the Richmond Fed, are also scheduled to speak the next day.

The market widely expects the Fed to hold rates steady in December following the pause in November. According to the CME FedWatch tool, the federal funds futures market currently prices in over a 90% probability that the Fed will keep rates unchanged at 5.25?5.5% at the next meeting. The probability of a "baby step" rate hike stands at around 9%. This indicates that despite expectations of prolonged high rates, the likelihood of an immediate rate increase is low.

In the New York bond market, the benchmark 10-year U.S. Treasury yield fell to around 4.50%. The 2-year yield, sensitive to monetary policy, hovered near 4.93%, and the 30-year yield was around 4.62%. The dollar index, which measures the dollar's value against six major currencies, remained steady near 105.5. The Chicago Board Options Exchange (CBOE) Volatility Index (VIX), known as Wall Street's "fear gauge," dropped more than 2% to 14.4.

Additionally, the weekly average 30-year fixed mortgage rate released on the day fell to 7.61%, down from 7.86% the previous week. CNBC reported this as the largest weekly decline in over a year.

Oil prices declined for the second consecutive trading day. At the New York Mercantile Exchange, December delivery West Texas Intermediate (WTI) crude oil closed at $75.33 per barrel, down $2.04 (2.64%) from the previous session. This closing price is the lowest since July 17. The two-day decline amounts to 6.79%.