Mateo Colombo
U.S. stocks rose on Tuesday, boosted by falling Treasury yields and new favorable comments from Federal Reserve officials.
Markets were on track to add to the gains made in the previous session, in which stocks staged a solid change after initially falling back on geopolitical concerns following a deadly attack on Israel.
At noon, the tech-heavy Nasdaq Composite (IND COMP.) led the three main averages, advancing 1.21% at 13,647.65 points. The S&P 500 benchmark index (SP500) added 1.08% to 4,382.55 points, while the Dow Jones (dji) won 0.79% at 33,870.45 points.
All 11 S&P sectors were in positive territory, led by Consumer Discretionary and Materials.
After being closed on Monday for Columbus Day, fixed income markets reopened on Tuesday. Treasury yields fell, as traders tried to catch up with global markets by buying bonds.
The long-term 10-year performance (US10Y) fell 15 basis points to 4.63%, while the more rate-sensitive 2-year yield (US2Y) fell 14 basis points to 4.94%.
See live data on how Treasury yields have risen across the curve on the Seeking Alpha bonus page.
"10-year US Treasury bond yield (US10Y) have fallen back to levels from about a week ago," said Paul Donovan of UBS. "There are two narratives seeking to explain this: an offer of safe haven from violence in the Middle East, or more moderate comments from members of the Federal Reserve.
"The weak response from the currency market suggests it may be more due to Fed expectations...Federal Reserve members are jostling each other for media attention today," Donovan added.
Earlier, Atlanta Federal Reserve President Raphael Bostic said at a forum that the central bank's policy rate was at a sufficiently high level. restrictive to reduce inflation to its 2% target. Other speakers scheduled to appear at various events today include Federal Reserve Governor Christopher Waller, Minneapolis Federal Reserve President Neel Kashkari, and San Francisco Federal Reserve President Mary Daly.
Positive talk from the Federal Reserve allowed markets to close higher on Monday, following comments from Dallas Federal Reserve President Lorie Logan, Federal Reserve Vice Chairman of Supervision Michael Barr, and Federal Reserve Vice Chairman Federal Reserve, Philip Jefferson. The comments helped market participants overlook the possible ramifications of the latest fighting between Israel and the Islamist group Hamas.
Turning to Tuesday's economic calendar, a New York Federal Reserve survey showed that U.S. consumers inflation expectations were mostly stable. Meanwhile, the NFIB Small Business Optimism Index fell to 90.8 in September from 91.3 in August. finally August Wholesale inventories reached -0.1% monthly to $900.2 billion versus the consensus figure of -0.1%.
Among active moving companies, Truist Financial (TFC) was the biggest percentage gainer in the S&P 500 (SP500) after report which had entered into talks to sell its insurance brokerage unit.
PepsiCo (ENERGY) won after the soft drink and snack giant reported strong organic quarterly sales growth and raised its full-year earnings per share guidance.
