Morning bid: US tech stocks rise as Treasury yields hit levels not seen since 2002
QQQ•The Nasdaq rose more than 1% to a record as long-term Treasury yields climbed to levels not seen since 2002. Brazil’s Bovespa jumped nearly 8% to a record close after the first round of its presidential election.
1. Tech advances despite yields
The Nasdaq gained more than 1% on Monday to a new record, while long-term Treasury yields climbed to levels not seen since 2002. Ahead of third-quarter earnings, investors assumed the AI-driven economic expansion would continue and generate inflation heat at the margins. The September ISM services survey was slightly below forecasts, while its price-input component reached a four-year high.
2. Brazil stocks hit record
Brazilian stocks, bonds and the real rose after the first round of the presidential election set up a runoff between right-wing candidate Flavio Bolsonaro and left-wing incumbent Luiz Inacio Lula da Silva. The October 25 runoff followed a nearly 8% jump in the Bovespa on Monday, its biggest daily gain since 2020 and a record closing high.
3. Oil flows and events
Gulf oil flows excluding Iran rose to more than 81% of pre-war levels in September, averaging 19.2 million barrels per day, compared with about 23.6 million barrels per day in the year before the Iran war began on February 28. Tuesday’s events included US August trade data, a three-year Treasury auction and speeches by Federal Reserve officials.
