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U.S. stocks climb as yields fall to two-week low; copper tumbles

Economy Jun 23, 2022 05:32PM ET
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2/2 © Reuters. FILE PHOTO: People wearing protective masks are reflected on an electronic board displaying Japan's stock prices outside a brokerage in Tokyo, Japan, October 5, 2021. REUTERS/Kim Kyung-Hoon 2/2

By Caroline Valetkevitch

NEW YORK (Reuters) - Stocks in global markets rose on Thursday as U.S. Treasury yields fell to two-week lows, while copper was at 16-month lows as investors worried about a possible global economic slowdown.

The Nasdaq led the way higher on Wall Street, rising more than 1.6%. Technology shares including Apple Inc (NASDAQ:AAPL) and defensive shares gave the S&P 500 its biggest boost as investors continued to worry about a potential recession.

Investors have been weighing the risk of hefty interest rate rises tipping economies into recession.

Federal Reserve Chairman Jerome Powell testified before Congress for a second day, a day after saying the Fed is committed to cutting inflation at all costs, and acknowledged a recession was "certainly a possibility."

"What we're seeing here is a (stock) market trying to absorb the Fed's tightening and basically trying to put in a low in a bear market," said Peter Cardillo, chief market economist at Spartan Capital Securities in New York.

"We have yields that are coming down, and so that's helping stocks," he said. "For now, the market has probably discounted somewhat of a mild recession."

Gauges of factory activity released on Thursday in Japan, Britain, the euro zone and United States all softened in June, with U.S. producers reporting the first outright drop in new orders in two years.

Manufacturing growth is slowing worldwide partly because China's COVID-19 curbs and Russia's invasion of Ukraine have disrupted supply chains and added to inflation problems.

The Dow Jones Industrial Average rose 194.23 points, or 0.64%, to 30,677.36, the S&P 500 gained 35.84 points, or 0.95%, to 3,795.73 and the Nasdaq Composite added 179.11 points, or 1.62%, to 11,232.19.

The pan-European STOXX 600 index lost 0.82% and MSCI's gauge of stocks across the globe gained 0.43%.

In the U.S. bond market, yields fell, partly on a growing belief that yields may have topped for the near term even if inflation stays high.

Yields have dropped from their highest level in more than a decade, reached before last week’s Fed meeting, when the U.S. central bank hiked rates by 75 basis points, the biggest increase since 1994.

Benchmark U.S. 10-year yields fell to 3.005%, before rebounding to 3.070%. They have dropped from 3.498% on June 14, the highest since April 2011.

Copper prices slumped as rising interest rates and weak economic data fed worries about demand.

Copper on the London Metal Exchange (LME) hit its lowest level since February 2021.

In the foreign exchange market, the euro slid across the board following the weaker-than-expected German and French PMI data.

Against the dollar, the euro declined 0.5% to $1.0509. It earlier declined below a key $1.05 level for the third time this week. The euro also declined 1.4% versus the Japanese currency to 141.85 yen.

Oil prices ended lower as investors weighed the risk of a recession. Brent crude futures fell $1.69 to settle at $110.05 a barrel, while U.S. West Texas Intermediate (WTI) crude futures dropped $1.92 to settle at $104.27.

U.S. stocks climb as yields fall to two-week low; copper tumbles
 

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Comments (14)
충만 배
충만 배 Jun 23, 2022 6:49PM ET
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Pump during a week and dump in a weekend.
hd tv
hd tv Jun 23, 2022 3:34PM ET
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just shows how embarrassing weak the US economy truly is, fed have only been rising rates for a few months and started qt only this month and people have already started to bet on the fed pivit, if the economy can't last a few quarters without rate cuts and qe it just shows its on its last legs really doesn't have long left as a economic superpower.
Jeff Chevalier
Jeff Chevalier Jun 23, 2022 1:27PM ET
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Dow has been dropping since January. Transportation since November. Powell constantly says that they will raise rates and for some reason people think it's going up. ****is wrong with you guys?
Imre Zsombor Varga
Imre Zsombor Varga Jun 23, 2022 1:04PM ET
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laod the moon buy hold forever baby $$$
Imre Zsombor Varga
Imre Zsombor Varga Jun 23, 2022 1:03PM ET
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OHI WPC VICI KREF ABR O DX STAG EPRT GTY STOR SLG KIM KDP RPT ARCC ADC WBA VZ VZ VZ LEG MAIN BMY MFC BTI FNF TROW UGI WU T INTC MMP LEG WHR BEN MO MCD BBY C KO JPM PM WBA
Marco cuevas
Marco cuevas Jun 23, 2022 10:57AM ET
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It's 10am time for wall street to short your tesla stocks you bought at 900, yoir nvidia and google stocks you bought uesterday...weeeeeeeeeeeee
Marco cuevas
Marco cuevas Jun 23, 2022 9:54AM ET
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Wall Street CLUELESS in this market they don't even know what direction to steer their algos....inflation, recession, stagflation, bear market rally, ELONS stupid tweets...hope you guys sweat it out while us long term investors sit back and watch the carnage while hedge funds continue to go bankrupt be a use they can't meet their margims...boo hoo.
jason xx
jason xx Jun 23, 2022 9:16AM ET
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Everyone is going to cash but cash earns nothing so it won't Stay there.
jason xx
jason xx Jun 23, 2022 9:15AM ET
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data only coming in negative if you read it that way. Plenty of fundamentally strong economic data out there if you look. Look at the jobs market for one.
Jeff Chevalier
Jeff Chevalier Jun 23, 2022 9:15AM ET
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They only print the data the way it is. Read it how you want, but it's negative.
Marco cuevas
Marco cuevas Jun 23, 2022 8:45AM ET
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Fake financial journalism nas the big machine spewing out lies so you can buy weekly fake dips so hedge funds can bleed you dry.
 
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