Stocks closed higher for the third day in a row and Treasury yields fell after Federal Reserve Bank of Atlanta President Raphael Bostic said no further interest rate increases will be necessary to control inflation.
Bostic's comments followed comments Monday by Dallas Federal Reserve President Lorie Logan, who said rising bond yields could do โsome of the work of cooling the economy for us, leaving less need for additional monetary policy tightening.โ
Stocks rose. The S&P 500, Nasdaq Composite and Dow Jones Industrial Average each rose 0.4% or more.
Ten of the 11 S&P 500 sectors rose. On Monday, all 11 finished higher.
The 10-year Treasury yield fell. It closed at 4.654%, down from 4.783% on Friday. The bond market was closed on Monday.
PepsiCo Stock Gained. The soft drink and snack company. raised its full-year earnings forecast after higher prices helped boost revenues.
Crude oil futures fell, while energy stocks barely changed. European natural gas prices built on Monday's sharp rise.
Israel's shekel held near Monday's seven-year low.
Stock indices in Europe and Japan rose.
