Markets in 5Wednesday, October 7
Yields ease from multiyear highs as megacap tech lifts stocks
The S&P 500, Dow and Nasdaq all gained Tuesday as the 10-year yield slipped to 5.27%, while the Fed's September minutes arrive at 2 p.m. ET today.
Stocks
Major indexes close higher as technology leads again
The S&P 500 rose 0.58% to 7,818.93 on Tuesday, the Dow gained 0.49% to 51,521.28, and the Nasdaq Composite added 0.45% to 27,599.79, according to TheStreet. Easing Treasury yields and continued strength in megacap tech supported the move. Small caps lagged, with the Russell 2000 ending lower.
Rates
Treasury yields slip, with the 10-year at 5.27%
The 10-year Treasury yield closed at 5.27% on Tuesday, down 4 basis points from 5.31%, according to Treasury data. The 2-year fell to 4.79% from 4.84% and the 30-year to 5.64% from 5.66%. The 2s10s spread stands at 48 basis points. The 10-year was at 4.78% a month ago and 4.18% a year ago.
Sectors
AI names rally while storage and healthcare stocks fall
Constellation Energy jumped 14.84% after announcing a 20-year nuclear supply deal to help power Google's AI buildout. Ciena rose 11.3% and Marvell 5.8%. Seagate fell 9.1% and Western Digital 6.9% as investors reassessed data center demand, CNBC reported. Option Care Health surged 32.88% on a report that McKesson and Clayton Dubilier & Rice are nearing a buyout worth more than $5 billion.
The Fed
Fed releases September meeting minutes at 2 p.m. ET
The Federal Reserve publishes minutes of its September meeting at 2:00 p.m. ET today. The FOMC raised the target range for the federal funds rate at that meeting for the first time in three years, according to Kiplinger. Consumer credit data for August follows at 3:00 p.m. ET.
Commodities
Gold and the dollar dip overnight while crude edges up
In early trading today, December gold futures fell 0.59% and November crude oil futures rose 0.68%, according to Yahoo Finance. The US Dollar Index was at 101.86, down 0.31%, per Schwab. S&P 500 futures were up 0.07%. Oil had retreated below $100 a barrel on Tuesday, Investrade reported.