DJIA Rises 1.05% as 10-Year Yield Surges Above 4%
The Dow Jones Industrial Average (DJIA) rose 1.05% on Thursday, with Salesforce and DXCM stock the top performers and Tesla the day's worst. The S&P 500 index rallied 0.8%, and the Nasdaq composite advanced 0.7%. A 0.2% increase was seen in the Russell 2000,
After Thursday’s market open, the Dow Jones Industrial Average traded up 0.3%, boosted almost solely by Salesforce.com's 15% advance. The S&P 500 decreased by 0.2% and the tech-oriented Nasdaq composite decreased by 0.4 On Wednesday, the 10-year Treasury bond yield rose above 4%, and held at that level in the morning.
Atlanta Fed President Raphael Bostic said he favors “steady” quarter-point rate increases to limit risk to the economy as the impact of higher interest rates may only begin to “bite” in the spring. Bostic suggested that the Fed could potentially halt rate increases by mid- to late-summer. He cautioned that if the inflation data exceeded expectations, it could influence the Federal Reserve's policy. Christopher Waller, a Federal Reserve Governor, asserted that if a series of impressive data sets were to come in, the Fed would be “obliged to increase interest rates” further, noting the extraordinary payrolls report for January.
The 10-year Treasury yield jumped 8 basis points to 4.07%, closing above the 4% level for the first time since November 9. U.S. jobless claims came in lower than anticipated, while eurozone inflation was higher than expected. The 10-year yield is close to the 15-year peak of 4.33% from October.
The 10-year Treasury yield surged above 4% and reached a four-month high as investors bet on the Federal Reserve to keep policy restrictive. Reuters reported that the 2-year Treasury had reached 4.94%, its highest level in 15 years.
Stocks were mixed Thursday, with the Dow Jones Industrial Average (DJIA) leading and the S&P 500 and Nasdaq tumbling as rates continued their recent rise and results from Salesforce (CRM) lifted the Dow. On Thursday, U.S. futures are showing mixed trading results, with the Dow Jones Industrial Average (DJIA) increasing by 0.12%.
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5. “Stock Index Futures Move Higher As Dovish Fed Comments Boost Hopes Of Fed Pivot” Barchart, 3 Mar. 2023, https://www.barchart.com/story/news/14739365/stock-index-futures-move-higher-as-dovish-fed-comments-boost-hopes-of-fed-pivot
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8. “Stock market news today: Stocks rally as Salesforce's 11% gain lifts Dow while S&P, Nasdaq reverse early losses” Yahoo News, 2 Mar. 2023, https://news.yahoo.com/stock-market-news-today-march-2-2023-135533324.html
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