US: Stocks mixed after US avoids government shutdown
WALL Street stocks finished mixed on Monday despite the US government striking a deal to avert a shutdown, while Treasury yields rose.
The Dow Jones Industrial Average slipped 0.2 per cent to close at 33,433.35.
The broad-based S&P 500 was flat at 4,288.39, while the tech-rich Nasdaq Composite Index advanced 0.7 per cent at 13,307.77.
This came after Congress passed a last-minute funding bill on Saturday to keep federal agencies running for another 45 days, hours before a midnight deadline.
“This measure means the government will remain open until November 17th, providing natural disaster aid but not additional funding for Ukraine or border security,” said Edward Moya of the Oanda trading platform.
“With a temporary funding solution in place, Wall Street quickly returned to fueling the bond market selloff,” he added in a note.
BT in your inbox
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Meanwhile, Treasury yields remained lofty with the yield on the 10-year US Treasury - a focal point for investors - reaching the highest level since 2007 on Monday.
Treasury bond yields are seen as a proxy for US interest rates and closely watched.
“The stock market is certainly highly sensitive right now to the movement in Treasury yields, and particularly the 10-year yield,” said Patrick O’Hare of Briefing.com.
The argument can be made, he told AFP, that if the 10-year note yield can move lower, the rebound effort in the stock market that many people are waiting for could come to fruition.
Among individual companies, shares of electric carmaker Tesla rose 0.6 per cent after the company maintained its full-year volume target of vehicles remained unchanged. AFP
Share with us your feedback on BT's products and services
