S&P 500 Ends Losing Streak Led by Micron and AI Stocks

The S&P 500 index closed at 7666.45 points, up 0.2%, ending a three-consecutive-session losing streak. The Dow Jones index rose 0.04% to 50926.56 points, and the Nasdaq Composite index gained 0.04% to 26871.60 points, in a session preceding the release of U.S. labor market data, which led many traders to prefer remaining neutral while waiting for the direction of monetary policy.

Ten out of eleven sectors within the S&P 500 index declined, with only one sector rising, reflecting that gains at the overall index level were limited and concentrated in specific stocks rather than a genuine market breadth. Investors are following this divergence between headline index performance and sector performance to measure the strength and sustainability of the rise in upcoming sessions.

The yield on the 10-year U.S. Treasury note reached 5.344% during trading, its highest level since April 3, 2002, before pulling back from that level, while the 30-year bond yield reached 5.636% before likewise giving up its gains amid investor buying demand. Rising yields impact borrowing costs and the appeal of stocks compared to debt instruments.

Micron Technology led the gains after rising by nearly 3%, following reported earnings per share of $33.42 in the fourth quarter of the fiscal year compared to $3.03 a year ago, with data center storage unit revenue reaching nearly $10 billion, which boosted artificial intelligence chip stocks that have become a main driver of U.S. indices.

What do these terms mean?

S&P 500: An index comprising 500 of the largest companies listed on U.S. stock exchanges. Nasdaq: A stock exchange focusing on technology companies. Bond yield: The interest paid by the government on its debt, which rises when buying demand is weak. Earnings per share: The portion of a company's profit allocated to each individual share.