Global stock indexes mostly rose on Monday after gains in U.S. mega-cap technology and other growth names, while five-year Treasury yields rose to their highest levels since early 2020.
The dollar declined after September production showed a decrease in the first quarter of the U.S. factories, erasing earlier gains. MSCI's gauge of stocks across the globe was also slightly higher, reversing earlier losses following data showing China's gross domestic product grew 4.9% in the July-September quarter from a year earlier, its weakest pace since the third quarter of 2020. read more
On Wall Street, the S&P 500 and Nasdaq ended up while the Dow edged lower. Shares of Facebook rose sharply recently with some positive reports out, including its plans to create 10,000 jobs in Europe to help build the so-called metaverse - an online world.
Investors awaited more third-quarter of results from U.S. companies this week after a mostly upbeat start to the earnings season last week.
This week you're going to get a heavier slate of earnings reports from a diverse set of industries, said Michael James, managing director of Equity Trading at Wedbush Securities in Los Angeles, adding the path of least resistance remains higher through earnings season for large firms. China's outlook as well as the supply constraints related to the coronavirus pandemic have been issues for American companies.
The Dow Jones Industrial Average fell 36,15 points, or 0.1%, to 35,258. 61, the S&P 500 gained 15,09 points, or 0.34%, to 4,486. 46 and the Nasdaq Composite added 124.47 points, or 0.84%, to 15,021. The pan-European STOXX 600 index lost 0.50% and MSCI's gauge of stocks gained 0.12%.
The dollar fell to 93.95 against a basket of currencies by 0.02% today in the Dollar - index. It reached earlier 94.17 as U.S. Treasury yields increased.
Yields on five-year bonds rose as high as 1.193%, their highest since February 2020, extending an increase of two weeks.
The yields of 30- year US bonds were only slightly higher, flattening the gap between five-year and 30 - year debt US 50 US 30 RR to its narrowest level since early 2020.
Some market watchers are forecasting that the Federal Reserve will need to increase interest rates sooner than previously expected to quell rising pressures on price.
Why is the U.S. central bank moving?
Brent crude oil futures were down 62 cents or 0.7% at $82.26 a barrel after hitting $86.04, the highest since October 2018.
U.S. West Texas Intermediate crude was 12 cents higher, or 0.1%, at $82.40 a barrel, after hitting $83.87, their highest since October 2014.
U.S. gold futures purchased gained 0.16% to $1,764. 80 an ounce.