Stocks rise as investors watch fluctuations in Treasury yields: Live updates

Stocks are rising on Thursday as the month ends as investors closely monitor the volatile Treasury market.

The broader S&P 500 index gained more than 0.3%. The Dow Jones Industrial Average and Nasdaq Composite both gained more than 0.2%.

The 10-year U.S. Treasury yield hit a new 15-year high after data released Thursday showed the labor market remains robust and fewer jobless claims were reported than expected. The stock market has taken a cue from the bond market lately, with each rise in interest rates increasing fears of a recession and sending stocks to new lows. The S&P 500 index hit its lowest level since June this week and the 10-year bond yield hit its highest level since 2007.

Communication Services was the best-performing sector in the S&P 500 Index, up 0.8%. Financial stocks also gained 0.7%. JPMorgan Chase and UnitedHealth led the Dow Jones higher, gaining more than 1%.

 

“You just get a break from the selling pressure. Without a key catalyst, such a move in one direction is typically difficult to sustain, said Ross Mayfield, investment strategy analyst at Baird. “This brief disruption, perhaps a brief downtime, should not be unexpected even in a more negative environment.”
Friday marks the end of a difficult month and quarter for trading. The Dow Jones is expected to end the month down more than 3% and the quarter down more than 2%. The S&P 500 Index is expected to end the month down 5% and the quarter down about 4%. The Nasdaq is on track to end the month and quarter with losses of more than 6% and 5%, respectively.

Investors’ attention will focus on the reading of the private consumption expenditure price index on Friday. The PCE is the Federal Reserve’s preferred measure of inflation.

 

Wall Street is also watching Washington as it negotiates with lawmakers a cooperation agreement with the United States. The spending bill will be submitted before the October 1 deadline. House Speaker Kevin McCarthy said on web-open-market-place Thursday morning that he is confident Congress will avoid a shutdown this weekend, even as he criticized the Senate bill for not addressing border security. Traders doubt that McCarthy will be able to lead his party to an agreement in the House of Representatives before the deadline.

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