As investors examined recent changes in bond yields and the corporate results season picked up momentum, the S&P 500 ended the day Tuesday close to even.
The overall index declined 0.01% to close at 4,373.20, while the Nasdaq Composite declined 0.25% to 13,533.75. To conclude at 33,997.65, the Dow Jones Industrial Average gained 13.11 points (0.04%).
The 10-year Treasury yield exceeded 4.8%, rising to its highest level since October 6 when it traded at 4.887%. The action was in response to retail sales figures that were hotter than expected by Dow Jones economists who were surveyed.
The broader market has recently been under pressure from rising yields as traders assess the possibility of tighter Federal Reserve policies for a longer period of time than anticipated. Investors have also thought about how the Israel-Hamas conflict would affect the world economy.
Chris Zaccarelli, chief investment officer of the Independent Advisor Alliance, stated that the stock market is currently being driven more by the bond market. You can now clearly observe the trend that has been there for the past two months.
Uncertainties are, undoubtedly, being somewhat reduced by the third quarter’s strong earnings season start.
Source (CNBC)
