Equities rebound to close higher as surging Treasury yields recede
SPY•U.S. stocks closed slightly higher after Treasury yields retreated from multi-decade highs. The Dow rose 0.04%, the S&P 500 gained 0.20% and the Nasdaq added 0.04%.
1. Stocks recover from losses
U.S. stocks rebounded from early losses on Thursday as Treasury yields reversed course after reaching multi-decade highs. The 10-year Treasury yield hit a 24-year high before retreating, while the S&P 500 recovered from a two-week low.
2. Yields and rate outlook
Yields initially rose after jobless claims came in below economists’ forecasts and manufacturing data showed higher input prices. They later fell as buyers stepped in and Federal Reserve Vice Chair Philip Jefferson suggested the central bank may be patient before raising rates again. Minneapolis Fed President Neel Kashkari said he expects further increases will be needed, though he was unsure whether the next move should come this month.
3. Sector moves and breadth
The S&P 500 energy index rose 1.9%, the strongest of the 11 major sectors, as Brent crude settled more than $4 higher. Technology gained 0.8%; Accenture rose after forecasting full-year revenue growth above estimates, and Micron gained 3% after issuing a better-than-expected revenue forecast. Advancing issues outnumbered decliners on both the NYSE and Nasdaq, while the S&P 500 recorded four new 52-week highs and 41 new lows.
