Stocks extended their November gains on expectations that the Federal Reserve will be able to achieve a soft landing as the US economy remains relatively resilient and inflation begins to cool.
The S&P 500 surpassed 4,500, though the gain was much smaller than the previous day's surge, when equities were boosted by short covering and bets that the Fed's hiking cycle has ended. Target soared on strong earnings, while Nvidia fell after a 10-day winning streak. Treasuries fell as traders reloaded bearish bets following a rally that nearly erased global bonds' 2023 decline. The dollar has recovered.
Wall Street sifted through a slew of economic data for hints about the Fed's next moves. Retail sales slowed in October, but prior months were revised higher, indicating some resilience as the holiday season approaches. Prices paid to US producers dropped unexpectedly by the most since April 2020.
Oil fell after a government report showed rising US crude inventories, and a Federal Reserve official suggested interest rates could remain high.