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US stocks rebound as Treasury yields reverse from multi-decade highs
Weekly initial jobless claims fell to 197,000, while the 10-year Treasury note earlier hit a 24-year high before yields started sliding.
US stocks swung higher on Thursday after Treasury yields, which had reached multi-decade highs during a global bond selloff, reversed course. Reuters described early pressure on the S&P 500, which had dropped to a two-week low before rebounding sharply.
The move came as fresh labor and economic data offered support for the view of a solid economy, even as inflation concerns weighed on risk assets. The Labor Department said weekly initial jobless claims dipped to 197,000, below the 200,000 forecast of economists polled by Reuters, and the Institute for Supply Management reported its manufacturing PMI eased to 54.5 from 54.6 while input prices rose, raising price pressure worries.
Yields had extended their rise, with the benchmark 10-year Treasury note reaching a 24-year high after September posted its biggest quarterly gain for the note since 1994. Reuters said stocks were pushed lower during that selloff, but the rebound followed as buyers stepped in and yields declined.
The turnaround was also linked to comments from Federal Reserve Vice Chair Philip Jefferson, who suggested the central bank may be patient, according to Reuters. The narrative in the report also pointed to the upcoming government payrolls report on Friday as investors watched for confirmation of the labor market outlook.
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