U.S Stocks Turn Lower as the S&P 500 Struggles to Keep Its Winning Streak Alive

U.S. stocks experienced a decline on Thursday, jeopardizing the S&P 500 index's attempt to sustain its longest winning streak in two years. Achieving a positive close would secure the index's lengthiest winning streak in nearly two decades.

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Current stock performance:

• The S&P 500 dropped by 6 points, or 0.1%, reaching 4,377.
• The Dow Jones Industrial Average lost 84 points, or 0.2%, settling at 34,027.
• The Nasdaq Composite decreased by 3.5 points, or less than 0.1%, reaching 13,646.

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On Wednesday, the S&P 500 and Nasdaq Composite extended their winning streaks to the eighth and ninth sessions, respectively, marking their longest such streaks since November 2021.

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Factors influencing the market:After three consecutive monthly losses, U.S. stocks have seen a sudden turnaround in November, potentially reaching a milestone if the S&P 500 achieves a ninth consecutive day in positive territory. FactSet data reveals that the last time the S&P 500 recorded such a long winning streak was on November 5, 2004. Additionally, if the Nasdaq rises for the tenth session, it would mark its longest winning streak since November 8, 2021.

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In the past two weeks, falling Treasury yields, a weaker U.S. dollar, and lower oil prices have contributed to the stock market's upward momentum. However, the market struggled to maintain this momentum on Thursday.

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Art Hogan, Chief Market Strategist at B. Riley Wealth, attributed the recent market rise to the reversal of headwinds such as rising Treasury rates, a stronger dollar, and increasing energy prices that were prevalent in early November.

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The Russell 2000, representing small-cap stocks, was up 0.2% at 1,717, outperforming last week and reflecting the strongest advance for U.S. stocks this year.

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Federal Reserve Chairman Jerome Powell's commentary is anticipated as a significant market-moving event on Thursday. Traders are interested in Powell's views on the rapid pullback in Treasury yields since the Fed's November policy meeting.

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Before the market opening, traders considered the latest report on jobless benefits, indicating a decline of 3,000 to 217,000 initial jobless claims last week. Additionally, the Treasury market was under scrutiny, with concerns about the market reception of government debt easing after a well-received $40 billion sale of 10-year bonds on Wednesday.

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The S&P 500, during its eight-day winning streak, has gained 6.45% as the 10-year Treasury yield decreased from a 16-year peak to below 4.5%.

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Federal Reserve Bank of Richmond President Thomas Barkin is scheduled to speak on the economic and policy outlook. On the earnings front, Tapestry (TPR) saw a decline after missing revenue estimates, and investors also reviewed earnings from Novavax (NVAX). Post-market, Plug Power (PLUG) and Wynn Resorts (WYNN) are set to present their financial results.