U.S. stocks rose on Monday ahead of the Federal Reserve’s two-day meeting that begins on Tuesday. Each of the major indexes flipped between gains and losses during the opening session of the week as investors braced for a third excessive rate hike from the central bank.
The yield on the 10-year Treasury rose to 3.51%, the highest since 2011.
The last time the closely-watched US bond yielded that much was during the European debt crisis, as several EU countries dealt with the fallout from the 2008 financial crisis.
“Targeted resistance from the breakout is ~4.00%. DeMARK indicators continue to support consolidation, but countertrend signals would be stopped on an initial print above 3.56%,” Fairlead Strategies’ Katie Stockton said in a Monday note.
Here’s where the U.S. indexes are after Monday’s closing bell at 4:00 p.m.:
- S&P 500: 3,899.93, up 0.69%
- Dow Jones Industrial Average: 31,019.68, up 0.64% (197.26 points)
- Nasdaq Composite: 11,535.02, up 0.76%
Here is more information:
- The stock market sell-off is almost over, according to JPMorgan, and resilient earnings and slowing inflation mean a rally is on the way.
- Shares of Moderna, BioNTech and Novavax fell after President Biden declared the COVID-19 pandemic over.
- S&P Global Market Intelligence said inflation concerns led institutions to sell $51.2 billion worth of stocks during the five-week period.
- According to Pantheon, the Fed could raise rates by less than expected in November due to a slowdown in the housing market.
- Russian seaborne exports fell to lowest level in a year.
- Oil prices will average $100 a barrel in 2023 as demand in China rebounds and Russian barrels disappear from the market, according to Bank of America.
- Oil prices rose, with West Texas Intermediate up 0.18% to $85.26 a barrel. Brent crude, the international benchmark, rose 0.33% to $91.65 a barrel.
- Gold traded unchanged at 1,683.50 an ounce. The 10-year yield rose 4 basis points to 3.487%.
- Bitcoin fell 1.06% to $19,508.06.