US STOCKS-S&P 500 ends higher as investors bet on lower rates
By Caroline Valetkevitch and Noel Randewich
NEW YORK, Dec 14 (Reuters) – The S&P 500 closed higher on Thursday on optimism that borrowing rates will decrease next year following a dovish pivot by the Federal Reserve.
Trading was mixed for much of the session, with Apple AAPL.O giving up gains after hitting an intraday record high.
Tesla TSLA.Oshares surged, with over $37 billion worth changing hands.
Sectors that have underperformed this year also rose, including energy and real estate.
Investors were closely watching 10-year Treasury yields, which broke below 4% for the first time since early August in the wake of the Fed statement. They were last down at 3.94%.
“The market by any measure and any metric is overbought and has been overbought, and a consolidation or a pause has been expected, especially after yesterday’s surge,” said Quincy Krosby, chief global strategist at LPL Financial in Charlotte, North Carolina.
“While the market celebrates lower rates, it can question why yields are below 4%” as investors weigh the economic outlook, she added.
AdobeADBE.O fell after the Photoshop maker forecast annual and quarterly revenue below estimates.
U.S. retail sales unexpectedly rose in November as the holiday shopping season got off to a brisk start, further alleviating fears of a recession, the Commerce Department reported on Thursday.
Fed rate cut expectations https://tmsnrt.rs/41oElWr
S&P 500’s busiest trades https://tmsnrt.rs/3TvGPRf
(Additional reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Pooja Desai and Richard Chang)
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
Original: AAPL Feed: US STOCKS-S&P 500 ends higher as investors bet on lower rates