Stocks hit new records as bond yields eased. The S&P 500 and Nasdaq Composite both ended at new record closing levels on Tuesday. The S&P 500 added 0.6%, and the Nasdaq Composite rose 0.5%. The Dow Jones Industrial Average added 253 points, or 0.5%.
Treasury yields eased from recent highs. Ten-year Treasury yields declined to just under 5.27% by session’s end, after hitting their highest levels since 2002 on Monday. The U.S. Treasury will test the market on Wednesday with a 10-year note auction. Rising global bond yields are still making investors nervous. French government bonds have been under pressure lately, with concerns about the country’s fiscal outlook. France’s 10-year borrowing cost has risen toward 5%. Those yields eased a bit on Tuesday, along with U.S. Treasury and German Bunds.
Oil prices climbed slightly. Brent crude moved back from the $100 threshold, edging 0.3% higher to $100.58 a barrel. Shipments are picking up as exporters find new routes, but there remain threats of attacks on tankers in the Strait of Hormuz.
Chip stocks were mixed. Seagate Technology fell more than 9%, following a report that it was facing the prospect of a bidding contest to acquire a component maker. Western Digital also fell sharply, by almost 7%. Overall, however, the PHLX Semiconductor index eked out a gain for the day. Marvell Technology gained almost 6% after an investor-day presentation with a big revenue target.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing