S&P 500 is trading up 0.04% at 3980.00
U.S. stock indexes climbed the most in roughly a month as bond yields eased, with investors shrugging off hawkish remarks made by Federal Reserve officials on Wednesday.
The last time the Nasdaq Composite, S&P 500 and the Dow Jones Industrial Average reached a higher one-day percentage jump was on Aug 10, although investors doubt this is a long-lasting trend.
The technology-heavy Nasdaq led gains among the main indexes, snapping a seven-session losing streak.
U.S. stocks have sold off sharply since mid-August after hawkish comments from Fed Chair Jerome Powell were compounded by signs of an economic slowdown in Europe and China and aggressive steps by major central banks to tame inflation.
Data signalling strength in the U.S. economy has prompted traders to bet on a 75-basis-point interest rate hike by the Fed later this month. Fed fund futures implied investors were pricing in a more than 76% chance of such a move.
The 10-year Treasury yield slipped from three-month highs hit earlier in the session, boosting shares of rate-sensitive stocks such as Tesla (NASDAQ:TSLA) Inc, Microsoft Corp (NASDAQ:MSFT) and Amazon.com Inc (NASDAQ:AMZN).
High-growth companies such as those in the tech sector tend to benefit when yields go down as it means a lower discount rate on their future profits when investors are calculating valuations.
Still, investors are looking for more outward signs of how Federal Reserve rate hikes will unfold to tame a surging inflation before its next meeting later this month.
On technical fronts S&P 500: RSI stood at 43.39 and currently it is trading above 5 days MA & below 20 and 50 days MA. So, SELL position can be taken with following target and stoploss: