Equities rebound to close higher as surging Treasury yields recede
SPY•U.S. stocks recovered from early losses to close higher Thursday as Treasury yields retreated after reaching multi-decade highs. The S&P 500 rose 0.23%, the Nasdaq gained 0.07% and the Dow added 0.06%.
1. Yields reverse course
Stocks fell early as economic data pointed to a solid labor market and persistent price pressures. Weekly initial jobless claims dipped to 197,000, below the 200,000 forecast, while the 10-year Treasury yield reached a 24-year high before retreating. Yields turned lower after buyers stepped in and Fed Vice Chair Philip Jefferson suggested the central bank may be patient before hiking rates again.
2. Indexes finish higher
Preliminary data showed the S&P 500 gained 17.28 points, or 0.23%, to 7,668.82; the Nasdaq Composite rose 17.73 points, or 0.07%, to 26,871.60; and the Dow Jones Industrial Average added 29.84 points, or 0.06%, to 50,935.89. The energy sector gained almost 2%, helped by higher oil prices. Technology rose nearly 1%, while Accenture climbed after forecasting full-year revenue growth above estimates and Micron closed higher after issuing a better-than-expected revenue forecast and reporting $32 billion in customer commitments under supply agreements.
