Nasdaq 100 Halts Five-Day Slide as Treasuries Gain: Markets Wrap

(Bloomberg) — Stocks climbed as Treasuries halted a selloff that drove 10-year yields near 4.5%, with traders keeping a close eye on news around President-elect Donald Trump’s administration.

The Nasdaq 100 outperformed after its longest rout since January, with Tesla Inc. up 5.6% on a news report Trump’s transition team have told advisers they plan to make a federal framework for fully self-driving vehicles one of the Transportation Department’s priorities. Nvidia Corp., which reports results this week, fell. Bonds rose across the US curve, reversing a move that earlier drove 30-year yields to their May highs. Bitcoin topped $91,000.

“Traders appear to be gauging the potential impact of a new Trump administration’s policies on the economy, and the possibility that the Fed may slow down its rate-cutting campaign,” said Chris Larkin at E*Trade from Morgan Stanley. “With a relatively light economic calendar this week, the focus will shift to earnings — especially Nvidia’s, which have the potential to dictate the market’s short-term momentum.”

The S&P 500 rose 0.4%. The Nasdaq 100 climbed 0.7%. The Dow Jones Industrial Average fell 0.1%.

Treasury 10-year yields declined three basis points to 4.41%. The Bloomberg Dollar Spot Index slid 0.4%.

Corporate Highlights:

• Nvidia Corp. dropped after the Information reported that the chip giant has asked its suppliers to change the design of the server racks for its new Blackwell graphics processing unit due to an overheating problem.
• Super Micro Computer Inc. climbed as the server maker approaches a Monday deadline to either file a delayed 10-K annual report or submit a plan to file the form to Nasdaq in order to remain listed on the exchange.
• MicroStrategy Inc. bought about 51,780 Bitcoin for around $4.6 billion, the largest purchase by the crypto hedge-fund proxy since it began acquiring the digital-asset more than four years ago.
• Spirit Airlines Inc. has filed for bankruptcy in the wake of greater competition from rival carriers and financial troubles following its scuttled merger with JetBlue Airways Corp.
• CVS Health Corp. named Glenview Capital Management founder Larry Robbins to its board as part of an agreement with the activist firm that’s been pressuring the company for change.
• President-elect Donald Trump nominated Chris Wright, the chief executive officer of Liberty Energy Inc., to lead the Energy Department.
• Newmont Corp. agreed to sell its Musselwhite gold mine in Ontario to Orla Mining Ltd. for up to $850 million as part of a divestment campaign designed to boost shareholder returns.
• Hewlett Packard Enterprise Co. was upgraded at Raymond James to strong buy from outperform.
• Moderna Inc. was upgraded to buy from hold at HSBC, with analysts saying the market isn’t giving enough credit to the firm’s pipeline.
• Biogen Inc. was downgraded to hold from buy at Needham, which said it does not see a “meaningful source of upside” for the stock in the next 12 months.

Key events this week:

• Eurozone CPI, Tuesday
• US housing starts, Tuesday
• Fed’s Jeff Schmid speaks, Tuesday
• China loan prime rates, Wednesday
• Nvidia earnings, Wednesday
• Fed’s Lisa Cook and Michelle Bowman speak, Wednesday
• Eurozone consumer confidence, Thursday
• US existing home sales, initial jobless claims, Philadelphia Fed factory index, Thursday
• Eurozone HCOB Manufacturing & Services PMI, Friday
• US University of Michigan consumer sentiment, S&P Global Manufacturing & Services PMI, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.4% as of 4 p.m. New York time
• The Nasdaq 100 rose 0.7%
• The Dow Jones Industrial Average fell 0.1%
• The MSCI World Index rose 0.4%

Currencies

• The Bloomberg Dollar Spot Index fell 0.4%
• The euro rose 0.5% to $1.0592
• The British pound rose 0.5% to $1.2675
• The Japanese yen fell 0.2% to 154.59 per dollar

Cryptocurrencies

• Bitcoin rose 2.7% to $91,560.89
• Ether rose 3.1% to $3,157.45

Bonds

• The yield on 10-year Treasuries declined three basis points to 4.41%
• Germany’s 10-year yield advanced two basis points to 2.37%
• Britain’s 10-year yield was little changed at 4.47%

Commodities

• West Texas Intermediate crude rose 3.1% to $69.07 a barrel
• Spot gold rose 1.8% to $2,610.41 an ounce

This story was produced with the assistance of Bloomberg Automation.

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