US: Stocks rise as bond yields continue retreat
WALL Street stocks notched a third straight day of gains on Tuesday as bond yields eased from recent highs, while markets monitored risks from the Israel-Hamas war.
The closely watched 10-year US Treasury note yield, which is used to price loans and mortgages, fell further on hints from Federal Reserve officials that they may be done hiking interest rates.
Elevated long-term interest rates could mean there is “less need” for another rate hike, Dallas Fed President Lorie Logan said Monday.
Her comments, and those of another Fed official, are a recognition “that financial conditions have tightened because of the bonds sell off, and that’s going to slow the economy and slow inflation,” Karl Haeling of LBBW told AFP.
The Dow Jones Industrial Average finished the day up 0.4 per cent at 33,739.30.
The broad-based S&P 500 added 0.5 per cent to close at 4,358.24, while the tech-rich Nasdaq Composite Index advanced 0.6 per cent to 13,562.84.
Oil prices eased slightly, a day after they surged on fears that war between Israel and Hamas militants in Gaza could spread to other countries in the oil-rich region.
Among individual stocks, shares in the beverage company PepsiCo rose 1.9 per cent after it reported better-than-expected third quarter results.
Enphase Energy saw its shares rise 5.0 per cent as investors flocked to energy firms, which stand to benefit from higher oil prices. AFP
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