Wall Street Close: US Stock Indices bounced back, despite higher US bond yields

  • The S&P 500, the Dow Jones, and the Nasdaq posted gains between 0.92% and 1.30%.
  • Chinese real-estate woes dented the market sentiment in the Asian session.
  • US Stocks rose despite higher US T-bond yields.
  • Facebook, Microsoft, Amazon, and Apple recovered from Monday’s losses.

Tuesday was a turnaround for equities as the major US stock indices edged higher, as the market sentiment improved throughout the day since the European session. The S&P 500, the Dow Jones Industrial (DJI), and the Nasdaq finished the session on the right foot, posted gains of 1.1%. 0.92% and 1.3%, respectively.

The market sentiment spurred the bounce in stocks

The market sentiment improved during the day. In the Asian session, the market mood was negative, as Chinese woes kept investors on their toes. Its real estate market is under heavy pressure, which Evergrande spurred, but now Fantasia Holdings Group Co missed a dollar bond payment, adding to the downbeat sentiment. 

As the European session began, the market shifted to a risk-on mood, on the back of good macroeconomic data and comments of Eurogroup Minister Paschal Donohoe, who said that the euro-area inflation should be expected to fall in the next year.

During the New York session, the market kept the pace set by European traders, with US stock indices trimming Monday’s losses, despite rising US T-bond yields, with the 10-year benchmark note rate getting back above 1.50% and the US Dollar Index testing the 94.00 thresholds, to finish the day at 93.98

On Tuesday, technology stocks made a comeback, led by Facebook (FB), with its shares gaining 2.1%  following Monday’s blackout failure of its services. Microsoft, Amazon, and Apple followed FB’s footsteps, adding 2%, 1%, and 1.4%, respectively.

In the commodities market, gold and silver were struck by the rise in US T-bond yields. Gold finished the day at  $1,759.62 lost 0.57%, while silver ended at $22.60, down 0.40%. 

Contrarily, crude oil rallied for the fifth consecutive day. Western Texas Intermediate (WTI) finished the day above $79.04, up almost 2%, whereas natural-gas prices rose 9.5% to $6.31 per million Btu’s.

On the macroeconomic front, the US trade deficit for August widened to $73.3 Billion. On the contrary, the US ISM Services PMI for September increased to 61.9 from 61.7 in August, despite supply chain issues and labor shortages.

In the crypto environment, Bitcoin broke above $50,000 for the first time since September 7.

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