S&P 500 and Nasdaq Extended Gains After Treasury Yields Edged Lower

Barry Adams
10 Oct, 2023
New York City

Stocks on Wall Street turned higher after Treasury yields edged lower and crude oil prices eased. 

Market sentiment improved after Treasury yields edged lower as investors added more bonds amid rising geopolitical tensions in the Middle East. 

But fears of the conflict spilling over into the wider region and drawing neighboring states into the conflict and the worries of oil supply disruption receded. 

Tech stocks led the gainers on Wall Street and in broad rally benchmark indexes jumped more than 1%. 

U.S. bond market was closed on Monday to observe Columbus Day and bond investors reacted for the first time today after the flare of Israel-Hamas conflict in the Middle East. 

At the time of rising geopolitical tensions, investors sought safety in U.S. Treasury, driving bond prices higher and lowering yields on bonds.

 

U.S. Indexes & Yields 

The S&P 500 index increased 0.9% to 4,375.96 and the Nasdaq Composite rose 1.1% to 13,635.62. 

The yield on 2-year Treasury notes decreased to 4.94%, 10-year Treasury notes inched lower to 4.64% and 30-year Treasury bonds edged down to 4.8%. 

Crude oil decreased $0.65 to $84.75 a barrel and natural gas prices increased 2 cents to $3.39 a thermal unit. 

The dollar index edged higher to 105.83, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.  

 

U.S. Stock Movers 

PepsiCo gained 1.5% to $163.81 after the beverage and food company reported its quarterly results and the company also lifted its full-year outlook. 

Palantir Technologies Inc increased 2.7% to $18.09 on news that the U.S. Army assigned a $250 million contract to test and develop artificial Intelligence tools.

Unity Software Inc jumped 4% to $30.88 after the company said chief executive John Riccitiello plans to retire and James M Whitehurst will step in as an interim chief executive.