U.S. Stock Indexes and Treasury Yields Advance As Crude Oil Prices Rise

Barry Adams
04 Apr, 2023
New York City

Traders reassessed the prospects of higher interest rates after oil prices soared more than 6% and inflation worries resurfaced. 

Treasury yields rose slightly  ahead of bank earnings next week and investors are looking for more clues on stress in the financial system. 

Next week, first quarter earnings calls from banks may provide answers if banks are curtailing lending and rebuilding capital to counter rising unrealized losses in treasury securities in the held-to-maturity account.  

The Federal Reserve is scheduled to meet in less than four weeks and many bond investors are looking for the central bank to raise interest rates by 25 basis points. 

The banking system stress and the surprise production cut from eight oil producing nations are going to add another layer of complexity for the policymakers in deciding the future trajectory of monetary policy. 

 

Indexes & Yields 

The S&P 500 index increased 0.1% to 4,128.54 and the Nasdaq Composite index futures added 0.2% to 12,202.05. 

The yield on 2-year Treasury notes increased a fraction to 3.99%, 10-year Treasury notes inched up to 3.45% and 30-year Treasury bonds edged up to 3.65%. 

Crude oil increased 75 cents to $81.14 a barrel and natural gas edged up 1 cent to $2.10 a thermal unit.  

 

U.S. Stock Movers 

Virgin Orbit Holdings Inc declined 18% to 16 cents after the rocket launch company filed for Chapter 11 bankruptcy protection in the U.S. 

The company sought bankruptcy protection in the district of Delaware after it failed to secure emergency funding and is looking to sell its assets. 

AMC Entertainment Holdings Inc plunged 27.5% to $3.69 after the company settled a shareholder lawsuit to proceed with exchanging its preferred stocks for common stocks. 

AMC's preferred equity units soared 22.9% to $1.83 after the company's recapitalization plan will issue more shares to preferred shareholders. 

The company will issue an additional one common share for every 7.5 preferred shares units, called APE units, held in connection with the planned conversion to common stock.  

The settlement consideration includes additional 6.9 million common shares which will be distributed to holders of preferred units prior to conversion.  

The settlement was announced by lawyers representing the stockholders group.