Late Afternoon Reversal Lifts Stocks In Volatile Session, Bond Yield Reaches 3%

Barry Adams
02 May, 2022
New York City

U.S. indexes closed higher but swung in choppy trading with the S&P 500 index reaching a new intraday low before the market reversal in the late afternoon. 

The S&P 500 index rose 0.6% to 4,155.05 and the Nasdaq Composite index jumped 1.63% to 12,536.02.  

The S&P 500 index touched a new intra-day low. 

Construction activities inched up modestly in March according to the latest data released by the Commerce Department. 

U.S. construction spending rose 0.1% in March to $1.73 trillion annual rate from the upwardly revised 0.5% spending in February. 

 Residential construction rose 1.0% to a rate of $882.0 billion, but spending on non-residential construction dropped 1.2% to a rate of $497.6 billion. Public construction eased 0.2% to $351 billion. 

The market indexes extended losses after the 10-year U.S. Treasury bond yield reached 3% for the first time since 2018 ahead of Fed policy meeting on Wednesday. 

Nearly 1,500 companies have reported quarterly results and most companies are reporting strong growth deceleration. 

The consumer products makers, retailers, and manufacturing companies are reporting weaker-than-expected earnings for the rest of 2022. 

Market indexes in Paris dropped 1.7%, in Frankfurt fell 1.2%, and in London edged up 0.5%.   

European Union growth is also on the skid after the April estimate of factory activities showed a decline in growth rate from March. 

Crude oil inched higher 32 cents to $105.01 in New York trading and gained 22 cents to $107.36 a barrel. 

In Asia, the Nikkei index declined 0.1% in April and factory activities expanded at a slower rate from the previous month in April. 

The Sensex index in India fell 0.2% on the worries that the rising food and energy prices, largely inflicted by the U.S. and European sanctions, are stoking higher worldwide food prices inflation.