The U.S. equity markets finished mixed in choppy action, with the continued rise in global bond yields again making market participants nervous, despite policy easing measures from China’s central bank. Treasury markets were closed in observance of Columbus Day and the economic calendar was void of any reports to provide any sway, while the U.S. dollar moved higher, gold tumbled, and crude oil prices were little changed.
The Dow Jones Industrial Average (DJIA) rose 39 points (0.2%) to 26,487, the S&P 500 Index was down 1 point to 2,885, and the NASDAQ Composite fell 53 points (0.7%) to 7,734. In moderate volume, 796 million shares were traded on the NYSE and 2.2 billion shares changed hands on the NASDAQ. WTI crude oil inched $0.05 lower to $74.29 per barrel and wholesale gasoline was unchanged at $2.09 per gallon. Elsewhere, the Bloomberg gold spot price tumbled $15.44 to $1,188.19 per ounce, and the Dollar Index—a comparison of the U.S. dollar to six major world currencies—was 0.1% higher at 95.75.
The bond markets were closed in observance of the Columbus Day holiday and the U.S. economic calendar was void of any releases today. Following last week’s surge in interest rates, the yield on the 2-year note sits at 2.89%—the highest since 2008—the yield on the 10-year note jumped to 3.23%—a level not seen since 2011—and the 30-year bond rallied to 3.40%—the strongest rate since 2014. The U.S. dollar gained ground.
The markets continue to grapple with signals the Fed is likely to continue to tighten monetary policy following hawkish commentary in the past week from Chairman Jerome Powell and Friday’s September nonfarm payroll report.
The focus on the Fed and rally in global bond rates will likely not fade this week, with the economic calendar yielding a trifecta of September inflation reports, headlined by the Consumer Price Index (CPI) and the Producer Price Index (PPI). Moreover, the docket will bring a read on how consumers are feeling as October begins, with the preliminary University of Michigan Consumer Sentiment Index.
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