- Rising US Treasury yields boost bank stocks as rising interest rates is generally bullish for banks.
- The Nasdaq climb to a new all-time high while the Dow Jones post its best daily advance in nearly 2 months.
The S&P 500 rose 0.9% to close at 2,772.35 as financial stocks gained 1.9%. The 10-year Treasury note yield benchmark rose to 2.98% following European yields after the European Central Bank talked about exiting its asset-purchasing program. JP Morgan Chase, Bank of America and Morgan Stanley stock were all up more than 2% while Goldman Sachs also posted solid gain at 1.7%.
The Dow Jones industrial average closed 346.41 points in the green at 25,146.39 as Boeing soared 3.2% contributing to most of the gains. The Dow Jones closed above 25,000 for the first time since mid-March. The 10-year Treasury note yield benchmark rose to 2.98% following European yields after the European Central Bank talked about exiting its asset-purchasing program. JP Morgan Chase, Bank of America and Morgan Stanley stock were all up more than 2% while Goldman Sachs also posted solid gain at 1.7%.
The Nasdaq Composite Index closed 0.7% higher at 7,689.24 and hit a new all-time high. However, the Financial Times reported that the European Union was about to reveal a negative finding from a probe on Google. Alphabet, Google parent company closed 0.4% lower.
"It's interesting because, over the past few years, you've seen tech perform as a defensive sector. What we're seeing are concerns about global growth as overseas data have, overall, suggested moderation outside of the U.S."commented Quincy Krosby, chief market strategist at Prudential Financial.
Looking back, last week the White House slapped tariffs on imported steel and aluminum to the United States. As a result, Mexico, Canada and the Eurozone are set to retaliate against US tariffs with more tariffs on US goods.
"At least for now, instead of getting trade deals done with the stick of steel and aluminum tariffs, we have instead invited tariffs back on us," "I thought the point of our tariffs on them was to get them to negotiate with us but instead it's just inviting more tariffs. Let's hope this stays under control," wrote in a note, Peter Boockvar, chief investment officer at Bleakley Advisory Group,
Nasdaq daily chart
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