S&P 500, Nasdaq hit record highs as Treasury yields, oil prices fall
The S&P 500 and Nasdaq hit fresh intraday records as Treasury yields and oil prices declined, while investors awaited the Federal Reserve's September meeting minutes.
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US stock futures rose on Tuesday as Treasury yields eased, extending a rally that pushed the Nasdaq Composite to a record high in the previous session. S&P 500 futures were up 0.3%, while Dow Jones Industrial Average futures gained 215 points, or 0.4%. Nasdaq-100 futures advanced 0.4%. The benchmark 10-year US Treasury yield fell 3 basis points to 5.277%, while the 30-year yield slipped to around 5.636%. Both yields had climbed to their highest levels since 2002 on Monday. The retreat in bond yields offered some relief to equities after a sharp rise in borrowing costs in recent weeks.
Investors are also turning their attention to the upcoming corporate earnings season and continued enthusiasm around artificial intelligence stocks. Nvidia, tech stocks in focusThe Nasdaq Composite closed at a record high in the previous session, helped by gains in Nvidia and other technology stocks. Nvidia shares were higher in premarket trading, along with Meta Platforms and Amazon, keeping technology stocks in focus ahead of the upcoming earnings season. The S&P 500 remained less than 1% below its record high. Bond markets have been volatile over the past six weeks, Morgan Stanley Wealth Management investment chief Lisa Shalett said in a note to clients, citing a potentially new Federal Reserve policy framework, economic growth and elevated oil prices amid the ongoing West Asia conflict.“
Nevertheless, while intraday implied volatility has risen, the six-week stretch has not reached the extremes that catalyzed the 2022 equity bear market,” Shalett wrote, according to CNBC.Oil prices retreatOil prices also eased, providing some relief to markets. Brent crude fell 2% to $98.05 a barrel, while West Texas Intermediate futures dropped 2.3% to $87.47. Investors have been closely watching energy prices as the prolonged West Asia conflict fuels concerns over inflation and the outlook for interest rates. Asian markets mixedAsian markets were mixed on Tuesday.
Japan's Nikkei 225 rose 0.29%, while South Korea's Kospi slipped 0.23%. Australia's S&P/ASX 200 gained 0.53% and Hong Kong's Hang Seng Index advanced 0.95%. Mainland Chinese markets remained closed for the Golden Week holiday. Also Read: US President signs order on tax-free red diesel, says truckers can save $100 per fill-up