The S&P 500 closed higher on the first trading day of October as Treasury yields pulled back from their highest levels since 2002. The Nasdaq Composite and Dow Jones Industrial Average also edged up, while rising oil prices tied to the Iran conflict may have kept the broader rally in check.
The S&P 500 added 0.19% to close at 7,666.45, clawing back earlier declines as Treasury yields retreated from multiyear highs. The Nasdaq Composite eked out a 0.04% gain to end at 26,871.60. The Dow Jones Industrial Average inched up 20.51 points, or 0.04%, to 50,926.56.
The 10-year Treasury yield hit an intraday high of 5.344%, its highest level since 2002, and the 30-year bond yield also scaled levels not seen in 24 years. Yields turned around by late-morning trading, however, with the 10- and 30-year yields last lower by 5 and 3 basis points, respectively. Declines were sharper on the short end, where the 2-year yield tumbled 10 basis points.
According to CNBC, KKM Financial CEO Jeff Kilburg said "there's some fatigue in the bond market". He pointed to a 50-basis-point move in 18 trading days following Fed Chairman Kevin Warsh's Jackson Hole remarks that a rate hike was coming.
Stocks have lately moved opposite yields, but further gains in oil may have kept the equity market's enthusiasm in check. West Texas Intermediate crude gained 2.7% to settle at $92.87 a barrel as traders awaited President Donald Trump's next move in the Iran conflict.
Micron shares closed up 3% on the day. The chipmaker posted revenue quadrupling last quarter.
Source: CNBC
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