S&P 500 Tests Resistance At 5,000, ARM Rockets, Oil Rebounds: What's Driving Markets Thursday?

Major U.S. stock averages traded on a mixed note at midday in New York, with the S&P 500 grappling with the psychological resistance level of 5,000, while the tech-heavy Nasdaq 100 managed to reach fresh record highs.

On a relatively data-thin day, Federal Reserve officials continued to dominate headlines. Richmond Fed President Thomas Barkin said the Fed can take its time in deciding whether to cut rates, aligning his views with those of Fed Chair Jerome Powell.

Treasury Secretary Janet Yellen testified before the Senate Banking Committee on Banking, Housing, and Urban Affairs, reiterating the economy’s extraordinary performance during the Biden administration but also highlighting some risks emerging in the commercial real estate sector.

Small caps rallied, with the iShares Russell 2000 ETF IWM up nearly 1%, while blue chips in the Dow Jones inched up 0.2%.

Treasury yields rose slightly across the curve, while the dollar remained broadly steady. Bitcoin BTC/USD recovered above $45,000, up 2.4%.

In commodities markets, WTI crude oil rose over 2.5% to around $76 after Israel rejected a ceasefire offer from Hamas.

British chipmaker ARM Holdings plc ARM surged nearly 60% after beating third-quarter earnings expectations and raising its 2024 forecasts.

Thursday's Performance In Major Indices, ETFs

The SPDR S&P 500 ETF Trust SPY was 0.1% lower to $497.65, the SPDR Dow Jones Industrial Average DIA fell 0.2% to $386.11 and the tech-heavy Invesco QQQ Trust QQQ rose 0.2% to $432.97, according to Benzinga Pro data.

Sector-wise, the Energy SPDR Select Sector Fund XLY outperformed, up 0.6%. The Utilities XLU, down 1.4%, was the laggard, followed by the Financial SPDR Select Sector Fund XLE down 0.8%.

Thursday’s Stock Movers

• Walt Disney Company DIS rose over 11% after reporting a higher-than-expected increase in profits.
• Other companies reporting to earnings were PayPal Holdings, down 11%, Confluent Inc. CFLT, up 31%, Wynn Resorts Ltd. WYNN, up 7%, Lumenton Inc. LITE, down 18%, Monolithic Power Systems. Inc. MPWR, up 16%, Kellanova K, up 3.5% and The Heshey Company HSY, up by 6%, and Ralph Lauren Corp. RL, up 17%.
• Companies reporting after the close are Dexcom Inc. DXCN, Illumina Inc. ILMN, Expedia Group Inc. EXPE, Verisign Inc. VRSN.
  
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