Stocks, particularly shares of tech companies, have been buffeted by volatile moves in government-bond markets
The Wall Street Journal reports:
U.S. stocks surged Monday as a weekslong advance in government bond yields stalled, easing investors’ jitters over rising interest rates.
The Dow Jones Industrial Average soared 681 points, or 2.2%, in midday trading, while the S&P 500 climbed 2.2%. Both indexes were on track for their biggest one-day gains since November. The technology-heavy Nasdaq Composite was up 2.3%.
The gains marked a robust rebound after all three indexes declined last week, weighed down by losses among tech stocks.
Monday’s advance came as the yield on 10-year Treasury notes, the benchmark borrowing cost in U.S. debt markets, slipped to 1.431% from 1.459% Friday. Yields fall when bond prices rise.
Stocks, and particularly shares of tech companies, have been buffeted by volatile moves in government-bond markets in recent trading sessions. A long period of low interest rates underpinned the stock market’s boom over the past year, by making it less attractive for investors to put money in bonds. Last week’s climb in yields called that into question. It also raised the specter that the U.S. Federal Reserve might put an end to easy-money policies to combat inflation.
Read the full WSJ article here.