The Nasdaq hit a new all-time high. With the U.S. economy looking healthy, and particularly the American consumer, the Nasdaq Composite index closed 1.1% higher, ending the day at a new record close. The S&P 500 added 0.7%, and the Dow Jones Industrial Average added 90 points, or 0.2%.
Growth hopes are fueling stocks and yields. Ten-year Treasury yields hit another two-decade high, ending the session at 5.31%. The resilient economy is leading investors to wonder if the Federal Reserve will have to hike aggressively to restrain it, and to slow inflation. Meanwhile, Brent crude futures slipped closer to $100 a barrel, ending the session down by about 2%, to $100.32.
A big logistics deal is struck. America’s largest freight broker, C.H. Robinson, said it had agreed to buy rival RXO for about $5.8 billion. AI demand spurs a deal for industrial software. France’s Schneider Electric agreed to acquire the U.S.’s PT C for almost $23 billion. PT C shares soared well over 30%, leading the S&P 500.
During the last cycle of rising rates, which started in 2022, one thing that broke was regional banking. Lenders such as Silicon Valley Bank saw capital holes open up. However, the situation in U.S. banking now has some important differences from four years ago.
Source: Wall Street Journal Markets · Summarized by HeadlinesBriefing