The Dow Jones Industrial Average and the S&P 500 inched higher Tuesday as traders looked for more clues on when the Federal Reserve may start cutting rates.
The 30-stock Dow advanced 31.99 points, or 0.08%, to close at 38,884.26. The blue-chip index rose for a fifth day and marked its longest winning streak since December. The S&P 500 added 0.13% and ended the session at 5,187.70, while the Nasdaq Composite slipped 0.1% to close at 16,332.56.
The yield on the 10-year Treasury was last down roughly 3 basis points at 4.45%. Gains were kept in check as Disney shares fell 9.5% after the media and entertainment giant posted a slight revenue miss but exceeded quarterly earnings expectations. Shares of defense technology firm Palantir plunged 15% on weaker-than-expected guidance.
Peloton’s stock price jumped 15.5% on news that private equity firms have been considering a buyout of the fitness company, people familiar with the matter told CNBC.
Wall Street is coming off a winning session, with investors riding the momentum seen late last week after fresh U.S. jobs data alleviated concerns that the economy was too hot and Fed Chair Jerome Powell ruled out an interest rate hike as the central bank’s next move.
“This is a market that mimics what the Fed is doing. The market has already digested Powell’s comments,” said Quincy Krosby, LPL Financial’s chief global strategist. She added that she is looking for strong volume on days in which the market rises, which could be a sign of trader conviction after the recent struggles for stocks.
“It is clear that the yields, and the speed at which the yields climb higher or climb lower, are very important for the market,” Krosby added. “If the market makes sense that it’s coming down too quickly, then that feeds into the idea that perhaps the economy is slowing at a faster rate.”
