Nasdaq Extends Gains, as Treasury Yields Fall

As traders are still betting on the pace of tightening by the Federal Reserve, stocks climbed to another record and bond yields retreated.

Technology and retail shares drove gains in the S&P 500, while the Nasdaq 100 extended its rally into a ninth straight day; the longest winning line of successive sessions since December.

Short-maturity U.S. Treasury yields fell as global investors reassessed the outlook for monetary policy after the Bank of England defied expectations by keeping rates on hold.

The decision followed weeks of speculation that the BOE would become the first major central bank to raise borrowing costs since the start of the pandemic.

It also came a day after Fed Chair Jerome Powell announced a start to a reduction in asset purchases, while saying officials can be patient on hikes. Interest-rate futures, which had priced in two quarter-point increases in 2022, shifted the second one into 2023.

Applications for U.S. state unemployment benefits fell last week to the lowest since March 2020, pointing to fewer dismissals amid strong demand for labor.

The data precede Friday’s employment report, which is forecast to show nonfarm payrolls rose by 450,000 in October.