Breaking News
Investing Pro 0
New Year’s SALE: Up to 40% OFF InvestingPro+ CLAIM OFFER

U.S. stocks gain in seesaw session, benchmark Treasury yield hits 3% ahead of Fed

Economy May 02, 2022 04:30PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A man holding an umbrella looks at an electronic stock quotation board outside a brokerage in Tokyo April 7, 2015. REUTERS/Issei Kato 2/2
 
XAU/USD
-0.05%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
US500
+0.25%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DJI
+0.08%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
JP225
+0.07%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
DX
+0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 
Gold
-0.10%
Add to/Remove from Watchlist
Add to Watchlist
Add Position

Position added successfully to:

Please name your holdings portfolio
 

By Stephen Culp

NEW YORK (Reuters) - Wall Street ended a volatile trading day higher on Monday and benchmark U.S. Treasury yields breached the 3% mark as investors braced for a widely anticipated U.S. Federal Reserve interest rate hike.

All three major U.S. stock indexes gyrated between positive and negative territory throughout the session, and the 10-year Treasury yield touched its highest level in more than three years.

Wall Street's last-minute rally came on the heels of the S&P 500's worst January-April percentage drop since 1932, as market participants steadied themselves for any signs of increased hawkishness from the Fed at the conclusion of its monetary policy meeting on Wednesday.

"The market is faced with a number of challenges and there's not a lot of conviction one way or the other," said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Connecticut.

"It's becoming very reminiscent of the early '70s," Pavlik added. "We've hit 3% on the 10-year (Treasury yield), interest rates are going up, there's a war going on, the economy is slowing down. All we need is Richard Nixon to come out of the ground."

A report from the Institute for Supply Management showed U.S. factory activity losing steam, its purchasing managers' index (PMI) coming in well below consensus.

This followed a PMI report from China showing factory activity contracting for the second straight month as widespread COVID-19 shutdowns disrupted production and supply chains.

The Dow Jones Industrial Average rose 84.29 points, or 0.26%, to 33,061.5, the S&P 500 gained 23.45 points, or 0.57%, to 4,155.38 and the Nasdaq Composite added 201.38 points, or 1.63%, to 12,536.02.

At its low point for the day, the S&P 500 was down as much as 1.7%.

The glum China factory data dragged European stocks to a sharply lower close, although the STOXX 600 pared its losses following a sudden 3% plunge earlier in the session - what some brokers called a "flash crash" caused by an erroneous trade.

The pan-European STOXX 600 index lost 1.46% and MSCI's gauge of stocks across the globe shed 0.05%.

Emerging market stocks lost 0.47%. MSCI's broadest index of Asia-Pacific shares outside Japan closed 0.47% lower, while Japan's Nikkei lost 0.11%.

Long-dated U.S. Treasury yields hit multi-year highs, with the benchmark 10-year yield crossing the 3% barrier for the first time since December 2018.

Benchmark 10-year notes last fell 26/32 in price to yield 2.9866%, from 2.885% late on Friday.

The 30-year bond last fell 58/32 in price to yield 3.0487%, from 2.946% late on Friday.

Crude prices turned around mid-session, as worries over weak demand due to bleak factory data from China were overshadowed by a potential European ban on Russian oil that stoked fears of tightening supply. [O/R]

U.S. crude settled at %105.17 per barrel for a 0.46% gain on the day, while Brent gained 0.41% to settle at $107.58 per barrel.

The dollar hovered around a 20-year high against a basket of currencies ahead of the Fed's expected rate hike as investors focused on the possibility that the FOMC could adopt an even more hawkish stance than expected.

The dollar index rose 0.65%, with the euro down 0.36% to $1.0503.

The Japanese yen weakened 0.27% to 130.20 per dollar, while Sterling was last trading at $1.2488, down 0.66% on the day.

Gold prices plunged to near 3-month lows as the prospect of faster-than-anticipated interest rate hikes from the Fed lifted Treasury yields and the greenback.

Spot gold dropped 1.8% to $1,862.22 an ounce.

U.S. stocks gain in seesaw session, benchmark Treasury yield hits 3% ahead of Fed
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.
  • Any comment you publish, together with your investing.com profile, will be public on investing.com and may be indexed and available through third party search engines, such as Google.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (1)
Baer Markit
Baer Markit May 02, 2022 11:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
no desire to sell bonds >3%
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email