Stocks climb, yields retreat from multi-decade highs
SPY•European stocks rose, with the STOXX 600 up 1%, while U.S. stock futures gained about 0.2%. Long-dated Treasury yields eased from fresh 24-year highs, and oil prices dipped.
1. Stocks advance
European stocks extended a global rally on Tuesday as investors turned more optimistic ahead of earnings season. The STOXX 600 rose 1% for a third straight session, while Nasdaq and S&P 500 futures added about 0.2% after a technology-led rally took the Nasdaq to a record close on Monday.
2. Bond yields ease
Bond markets stabilized after last week’s selloff. France’s 10-year yield fell 9 basis points to 4.77%, Germany’s 10-year yield dropped 5 basis points to 3.44%, and the U.S. 10-year and 30-year yields eased 3 and 2.8 basis points, respectively, after touching fresh 24-year highs overnight.
3. Earnings and commodities
Third-quarter earnings season begins next week. Goldman Sachs estimates consensus forecasts imply 27% growth in S&P 500 earnings, with more than half coming from companies benefiting from AI infrastructure spending. Brent crude fell 0.4% to $99.91 a barrel, while Nvidia rose 1% in premarket trading.
