Stocks Get Tech Boost Just Hours Before Powell: Markets Wrap

(Bloomberg) — A rally in some of the world’s largest technology companies drove stocks higher, with traders also wading through the latest economic data and awaiting Jerome Powell’s remarks for clues on the Federal Reserve’s next steps.

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Equities headed toward fresh all-time highs, with the S&P 500 on pace to notch its 56th closing record this year. A gauge of the “Magnificent Seven” megacaps extended its 2024 surge to 62%. Salesforce Inc. and Marvell Technology Inc. surged at least 9% as their results boosted hopes both companies will keep benefiting from an industrywide boom in artificial intelligence. Treasury yields rose alongside the dollar.

Powell participates in a moderated discussion laster Wednesday, and investors will await any assessment of the job market and inflation as well as clues to whether the US central bank will lower rates in December. Fed Bank of St. Louis President Alberto Musalem said it may be time for policymakers to slow the pace of cuts amid higher than desired inflation and declining concerns over the labor market.

Private payrolls rose by 146,000 last month after an October increase that was revised down to 184,000, according to ADP Research Institute data released Wednesday. The median projection in a Bloomberg survey of economists called for a rise of 150,000. Meantime, the Beige Book will likely note a post-election surge in sentiment, according to Eliza Winger at Bloomberg Economics.

The S&P 500 rose 0.3%. The Nasdaq 100 climbed 0.7%. The Dow Jones Industrial Average added 0.5%.

Treasury 10-year yields advanced four basis points to 4.26%. The Bloomberg Dollar Spot Index rose 0.2%.

Corporate Highlights:

• Dollar Tree Inc. sales improved in the third quarter, a sign the discounter is making headway in fending off competition and drawing in more shoppers.

• Foot Locker Inc. cut its full-year sales and profit forecasts, citing more discounts and a pullback in consumer spending ahead of the crucial holiday season.

• JetBlue Airways Corp. boosted its forecast for fourth-quarter results following higher-than-expected bookings in November and December as well as lower costs tied in part to falling fuel prices.

• Eli Lilly & Co. said its weight-loss drug Zepbound outperformed rival Novo Nordisk A/S’s Wegovy in the first head-to-head trial of the two blockbusters.

• Brian Thompson, the chief executive officer of UnitedHealth Group’s insurance division, was fatally shot in New York City Wednesday morning, the New York Police Department said.

• Royal Bank of Canada beat estimates as it aside less money than expected for potentially bad loans, revenue grew across businesses and the company got a boost from its acquisition of HSBC Holdings Plc’s Canadian operations.

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