The Dow Jones Industrial Average gained 1% last week alongside the S&P 500 and Nasdaq, even as Treasury yields jumped to multi-year highs and crude oil fell for the week. The advance followed a stretch in which AI stocks swung from fierce losses to a sharp relief rally, with a heavy earnings slate due this week.
The Dow Jones Industrial Average climbed 1% last week after undercutting its 50-day moving average. The advance came even as Treasury yields spiked to multi-year highs and crude oil fell for the week.
Indexes climb across the board
Gains extended across the rest of the market. The S&P 500 index gained 1.05% last week, moving back above its own 50-day line. The Nasdaq composite jumped 1.6%, rebounding from a three-month low to just below its 21-day line.
The small-cap Russell 2000 edged up less than 0.1% before slipping back below its 50-day line on Friday.
AI stocks swing from losses to relief rally
AI stocks opened the week with fierce losses that may have been tied to a highly leveraged hedge fund liquidating big AI positions. The sell-off intensified Wednesday as bond yields spiked after the Federal Reserve's meeting. But Microsoft and Amazon.com helped spur an AI-led rebound Thursday, as did the hedge fund's liquidation coming to an end.
Yields hit multi-year highs, oil reverses lower
The 10-year Treasury yield rose 6.5 basis points to 4.74%, a fresh 18-month high on Friday. The 30-year yield spiked 11 basis points to 5.27%, its highest level in 19 years. The two-year yield declined four basis points to 4.29%.
Those moves point to lower odds of a near-term Fed rate hike, alongside concern that the Warsh Fed won't act to curb inflation. U.S. crude oil futures tumbled 5.2% to $84.67 a barrel last week, though prices ended well off their lows.
Earnings-heavy week ahead
Investors face a heavy earnings slate this week, led by SpaceX's first results since its June IPO, with the stock trading at record lows well below its $135 offering price. Sandisk, Western Digital and AMD are also due to report, offering insight into AI hardware demand. A follow-through day confirming the Nasdaq's rally attempt could come as early as Tuesday.
Source: Investor's Business Daily
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