US benchmark equity indexes experienced notable gains today as traders assessed the latest economic data and corporate earnings. The Nasdaq Composite rose by 0.9% to reach 19,656.8, while the Dow Jones Industrial Average climbed 0.4% to 44,873.6. The S&P 500 saw an increase of 0.3%, settling at 6,069.2.
The technology sector led the market with significant gains, whereas energy stocks faced declines. In the realm of economic indicators, the US services sector showed continuous growth in November, despite the Institute for Supply Management reporting a slower sequential growth rate. However, S&P Global indicated an acceleration in this sector.
Oxford Economics commented, "The (ISM survey) result does not influence our outlook for continued expansion in consumer spending, particularly on the services side, which will keep the economy humming along." Private sector employment growth in the US fell short of Wall Street's expectations in November.
Nonetheless, wage growth for job stayers marked its first increase in more than two years, as reported by Automatic Data Processing. Meanwhile, the Bureau of Labor Statistics is anticipated to reveal an addition of 215,000 nonfarm jobs from the previous month, a stark increase compared to October's mere 12,000 jobs gained, according to Bloomberg's survey. Mortgage applications also experienced a surge for the fourth consecutive week, attributed to a drop in rates that reached their lowest level in over a month, as stated by the Mortgage Bankers Association.
Further, the US two-year yield dipped 4.7 basis points, resting at 4.12% during the day, while the 10-year yield fell by 2.7 basis points to 4.19%. On the corporate front, Salesforce shares soared by 8.8%, making it the best performer on the S&P 500 and the Dow indices. The customer relationship management desktop platform reported fiscal third-quarter revenue that exceeded analysts' expectations, powered by growth in subscription and support sales.
Marvell Technology saw its stock rise 24%, marking it as the top gainer on the Nasdaq earlier in the day. The semiconductor solutions provider offered an optimistic fiscal fourth-quarter earnings outlook, with their previous quarter's results surpassing market predictions. Conversely, Texas Pacific Land shares plummeted 14%, representing the largest drop on the S&P 500. General Motors anticipates a profit decrease exceeding $5 billion due to challenging market dynamics in China, which necessitate restructuring efforts in the region.
Their shares dropped by 1.4% following the announcement. Other notable companies like Synopsys, SentinelOne, Five Below, and American Eagle Outfitters are set to report their results after Wednesday's market closes. Meanwhile, West Texas Intermediate crude oil prices dipped 1.6%, settling at $68.81 per barrel. In terms of inflation, expectations suggest a slowdown towards the Federal Reserve's long-term 2% target.
"Additional easing of moderately restrictive policy toward neutral will be appropriate over time," commented St. Louis Fed President Alberto Musalem. He added, "It seems important to maintain policy optionality, and the time may be approaching to consider slowing the pace of interest rate reductions, or pausing, to carefully assess the current economic environment, incoming information and evolving outlook." Gold prices registered an increase of 0.4%, hitting $2,677.70 per troy ounce, while silver saw a rise of 1.3% to $31.91 per ounce..