Treasury yields hover near multi-year highs as Fed patience expected
The S&P 500 ended the session up 0.58%, passing the 7,800 threshold for the first time, according to The Guardian. The tech-heavy Nasdaq rose 0.45%, and the Dow Jones Industrial Average climbed 0.49% but remained slightly below its record high set in August.
The advance was driven by shares of Marvell Technology, Advanced Micro Devices, and Broadcom after recent developments showed growth in the markets for the chips used to power artificial intelligence, The Guardian reported.
Wall Street grew more confident the Federal Reserve will leave interest rates unchanged at its next board meeting in October, The Guardian reported. Job figures from September showed underwhelming growth in the labor market, and multiple Fed officials have said the next interest rate increase can probably wait.
The 10-year U.S. Treasury yield stood at 5.31% on Tuesday, near the 5.349% reached in Monday’s session — the highest level since April 2022, according to The Guardian. Yields have risen amid concerns over high inflation and interest rates.
For American consumers, higher energy prices remained a burden. Gas prices dipped over the past week but are about $1.20 per gallon higher on average than a year ago, The Guardian reported. Diesel, which fuels trucks, buses, and trains, has fallen from a record high but remains more than 40% above year-ago levels.
The economy is expected to be a top issue in the upcoming midterm elections, with many voters expressing frustration over high prices. Trump, who has been stumping for Republican candidates across the country, has sought to paint a different picture for voters.
At a rally in Nebraska on Monday night, Trump said that “our nation is doing better now than it’s ever done” and that gas prices would fall below $1.85 a gallon “in no time,” The Guardian reported.