Stocks finish higher, S&P 500 breaks 5-day losing streak
Stocks closed higher, with the S&P 500 snapping its longest losing streak since October.
The S&P added 0.75% to finish at 3,963.51. The Dow Jones Industrial Average gained 183.56 points, or 0.55%, to settle at 33,781.48, while the Nasdaq Composite rallied 1.13% to end at 11,082.00.
— Samantha Subin
Interest on 30-year fixed rate mortgages falls
The cost of financing a home has ticked lower for a fourth consecutive week, according to Freddie Mac.
The weekly average rate on a 30-year mortgage is now 6.33%, down from 6.49% last week. Over the past month, the interest rate on these loans has come down about 75 basis points: On Nov. 10, the average rate on a fixed 30-year mortgage was 7.08%.
Even with the decline in the short term, the cost of financing a home loan is up significantly from a year ago. Last year at this time, the rate on a 30-year mortgage averaged 3.1%.
Despite the decline in rates, demand for home loans continues to decline. Mortgage application volume slid 1.9% last week, compared to the week before that, according to the Mortgage Bankers Association.
— Darla Mercado, Diana Olick
Part of the yield curve is now most inverted since 2001
The inversion of the 3-month and 10-year Treasury yield curve is now the deepest since January 2001 at nearly 90 basis points, according to CNBC data. The short end of the curve soared to 4.30% from just 0.05% at the beginning of the year as traders priced in higher interest rates.
The yield curve inverts when shorter-term Treasury rates rise above longer-term yields. Many economists view the 2-year 10-year part of the yield curve as more predictive of a potential recession.
Cathie Wood pointed to that part of the yield curve, which is the most inverted since the early 1980s. The popular investor said the bond market is signaling that the Federal Reserve is making a “serious mistake” with its jumbo rate hikes.
— Yun Li
