Stock market news today: Stocks extend win streak as investors cling to Fed rate excitement
Stocks continued their hot streak Tuesday, extending gains for the seventh straight session as renewed confidence in the Federal Reserve ending its tightening campaign this year lifted investors.
The tech-heavy Nasdaq Composite (^IXIC) rose 0.9%, continuing its own win streak, while the benchmark S&P 500 (^GSPC) edged up by nearly 0.3%. The Dow Jones Industrial Average (^DJI) increased by nearly 0.2% or close to 60 points.
Recent signs of a weaker US economy signaled to the market that the Fed could ease up on its rate hikes. But central bankers have said that the door is still open to additional increases, even if officials decide to pause for a time.
And while the market's momentum has swung to a more optimistic reading, investors have plenty of cautious voices to check their exuberance, including Minneapolis Fed President Neel Kashkari, who emphasized both Monday and Tuesday that the central bank likely has more work ahead of it to control inflation. Kashkari was one of several more hawkish members of the Fed to express caution on Tuesday. Meanwhile, Chair Jerome Powell is set to speak later in the week.
Read more: What the Fed rate-hike pause means for bank accounts, CDs, loans, and credit cards
"There was quite a bit of euphoria at the end of last week on the belief that the Fed is done, the jobs market is slowing, that the US economy is going to experience a soft landing," Michael Hewson, chief market analyst at CMC Markets UK, told Reuters. "People have started to become a bit more clear-eyed. There is the risk that the Fed could rise again."
The fresh Fed doubts clouded the outlook for oil, helping push WTI crude prices below $80 a barrel for the first time in over two months despite the prospect of Saudi and Russian supply cuts. West Texas Intermediate crude futures (CL=F) and Brent crude futures (BZ=F) both sank 4%, to $77.48 and $81.76 a barrel, respectively.
Also dragging on oil was trade data showing China's drop in exports unexpectedly accelerated in October, a sign of flagging overseas demand, while its imports rose. But there was a bright spot for the world's second-biggest economy, as the IMF upgraded its GDP growth forecasts for the country this year and next.
In corporate news, WeWork (WE) on Monday filed for bankruptcy after the once most valuable US startup grappled with expensive leases. Its shares have fallen about 98% this year.
Meanwhile, earnings season continues with reports from Uber (UBER) and Rivian (RIVN) highlighting Tuesday's docket, ahead of the closely watched Disney (DIS) results due Wednesday.
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