Stock Market News for Sep 29, 2023

On Thursday, September 29, 2023, U.S. stock markets experienced upward momentum despite a day marked by fluctuations. Encouraging movements were influenced by a compilation of fresh economic data and a dip in yields across various government bonds, which heightened investor appeal towards equities. The three prominent stock indexes all concluded the day's trading in the green.

How Did The Benchmarks Perform?

The Dow Jones Industrial Average (DJI) climbed 0.4%, adding 116.07 points to settle at 33,666.34. A majority, 19 out of 30, of its indexed stocks posted gains, while the remaining 11 retreated. The index felt some early pressure, sagging nearly 77 points during the session, but managed to recover. Earlier in the week, it breached its 200-day moving average, a crucial support level that had been sustained since May.

The Nasdaq Composite, propelled by robust performances from large-cap tech firms, advanced 0.8%, or 108.43 points, closing at 13,201.28. Among the top performers was Sirius XM Holdings Inc. SIRI, its stock witnessing a significant surge of 15%. Holding a Zacks Rank #3 (Hold), SIRI showed remarkable resilience in the market.

The broader S&P 500 index also saw gains, edging up 0.6% to finish at 4,299.70, despite having fallen below both its 100-day and crucial 4,300 support level earlier in the week, which suggested potential for further declines.

Most sectors within the S&P 500 shared in the advance, with Communication Services, Consumer Discretionary, Materials, and Real Estate sectors seeing noteworthy increases of 1.1%. Contrarily, the Utilities sector was the sole sector to experience a downturn, dropping by 2.2%.

Market volatility, as measured by the CBOE Volatility Index (VIX), decreased by 4.8%, indicating a tempering of investor concerns. Trading volumes beat the last 20 sessions' average, with advances outpacing declines across the NYSE and Nasdaq.

Government Bond Yields and Economic Data

Yields on U.S. Treasury notes experienced a collective downturn, with 10-year note yields falling and the 2-year note yields trending downwards likewise. Longer-term 30-Year bond yields also decreased. Investors often view reduction in bond yields favorably as it typically signals reduced opportunity cost for stock investments.

Economic data reflected mixed signals, as weekly jobless claims showed a slight increase, although they remained below expectations. The U.S. economy's growth rate for the second quarter was adjusted down in its final estimate, with the personal savings rate seeing an uptick. Inflation measures, as tracked by the PCE price index, revealed a slight contraction, with the core PCE—the Federal Reserve's preferred inflation barometer—also witnessing a marginal decrement. Additionally, reports pointed to a significant slowdown in pending home sales, with a surprising month-over-month decline.

Amid these economic currents, Sirius XM Holdings Inc. offers satellite radio services on a subscription basis, a business model that provides stability and sustaining subscriber revenue, making it a stock to watch in the fluctuating market environment.

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