US stocks rally as Treasury yields retreat
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Traders work on the floor of the New York Stock Exchange, in New York City.
PHOTO: REUTERS
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NEW YORK - Wall Street stocks advanced on Thursday as Treasury yields eased, bringing some relief to investors amid interest rate concerns.
The Dow Jones Industrial Average rose 0.4 per cent to close at 33,666.34.
The broad-based S&P 500 picked up by 0.6 per cent to 4,299.70, while the tech-rich Nasdaq Composite Index gained 0.8 per cent to 13,201.28.
The bounce came as the yield on the 10-year US Treasury note retreated from an earlier jump – a key move as the figure is commonly used as a benchmark for other interest rates.
Investors have been “on edge” this week as the 10-year yield kept making new highs, said Mr Angelo Kourkafas, of financial firm Edward Jones.
“The biggest headwinds for the markets recently – rising yields, rising oil prices, rising dollar – all three are lower today,” he added.
“So, think of it as a relief rally in a sense.”
On Thursday, government data also indicated that initial jobless claims hovered at low levels.
This has led analysts to hold on to their expectations that the Federal Reserve will hold interest rates steady before gradually cutting them next year.
Looking ahead, investors will turn their focus to the latest personal consumption expenditures price index figure, the Fed’s preferred inflation gauge, due Friday morning.
Traders are also eyeing efforts by US lawmakers to avert a government shutdown as Congress remains in a deadlock. AFP
