On Tuesday, Wall Street saw a notable increase in stock prices, with both the S&P 500 and Nasdaq reaching their highest levels in three weeks. This positive trend was mainly influenced by the reassuring statements made by officials from the U.S. Federal Reserve, which in turn led to a decrease in Treasury bond yields. At the same time, investors were keeping a close watch on the escalating tensions in the Middle East.
After hearing from prominent Federal Reserve officials on Monday, Atlanta Fed President Raphael Bostic emphasized that there’s no need for the U.S. central bank to raise interest rates further, and he doesn’t foresee a recession in the near future.
The 10-year Treasury bond yield, which had previously reached a 16-year high, experienced its most significant single-day drop in nearly seven months on Tuesday. This shift occurred as trading resumed in the U.S. bond market after Columbus Day, also recognized as Indigenous Peoples’ Day.
At 12:00 p.m. ET, the Dow Jones Industrial Average showed a rise of 267.48 points, or 0.80%, reaching 33,872.13. The S&P 500 recorded an increase of 47.13 points, or 1.09%, landing at 4,382.79, while the Nasdaq Composite climbed by 165.62 points, or 1.23%, to 13,649.86.
Traders are currently estimating an 88% likelihood of interest rates remaining unchanged in November and a 74% likelihood in December, according to CME’s FedWatch tool.
As the week progresses, attention will shift to key inflation indicators, including September’s producer price and consumer price indexes, along with the release of the Fed’s September meeting minutes.
The S&P index reached 10 new 52-week highs and recorded two new lows, while the Nasdaq showcased 46 new highs and 129 new lows.
On the New York Stock Exchange (NYSE), advancing issues outpaced decliners by a ratio of 5.30-to-1, while on the Nasdaq, the ratio was 3.22-to-1.
