US stocks rise as bond yields decline…and Nasdaq adds 1.35% to its value
Today, Wednesday, the Dow Jones Industrial Average emerged from the trap of declines, which continued for three consecutive sessions, adding 127 points to its value, and the US stock market regained some of its optimism, in conjunction with the decline in Treasury bond yields, which in the previous session recorded their highest levels since the year 2000.
By the end of Wednesday’s trading, the rising points for the most famous index in the world represented 0.39% of its value at the beginning of the day, and the broader S&P 500 index rose by 0.81%, while the rise in the Nasdaq index, which is most affected by interest rate expectations, reached 1.35%.
Hope returned to stock investors with bond yields declining from their highest levels in more than two decades, which they recorded yesterday, Tuesday, as 10-year Treasury bonds were traded at a yield of 4.735%, compared to a yield of 4.77% at which they were traded in the previous session.
Despite the decline in prices during the first minutes of trading, the stock market received additional support from data that showed weak additions to private sector jobs in America, which some considered the beginning of extinguishing the flame of the labor market, which may be sufficient justification to dissuade the Federal Reserve from raising the expected interest rate next month. .
In Europe, stocks fell for the third day in a row, driven by declines in commodity-related stocks and retail stocks, while US and European bond yields stopped rising.
The STOXX 600 index of European stocks ended Wednesday’s trading down 0.1%, touching its lowest levels in six months.
The energy sector led the decline, declining 2.1%, recording its worst daily performance in about three months, with oil prices falling by more than five dollars a barrel due to demand concerns and an increase in US crude stocks.
Mining company shares fell 0.9%, tracking the impact of the decline in metal prices.
The retail trade companies index fell 1.7% to its lowest level in about four months, as consumers face the brunt of rising prices, while banking stocks fell 0.38%.
In a related manner, oil prices fell today, Wednesday, by more than five dollars at settlement, as the decline in demand and the darker macroeconomic picture cast their shadow over today’s transactions.
Brent crude futures fell $5.11, or 5.6%, to $85.81 per barrel upon settlement, while US West Texas Intermediate crude fell $5.01, or 5.6%, to $84.22 per barrel. The two crude oil prices fell more than five dollars at their lowest level during one session.
Crude inventories in the United States fell by 2.2 million barrels to 414.1 million barrels during the previous week ending September 29, but crude oil inventories at the delivery center in Cushing, Oklahoma, rose for the first time in eight weeks.
Heating oil and gasoline futures also fell more than 5%. Crude oil prices have fallen about ten dollars since last week’s settlement. A Reuters poll reported that gasoline stocks rose by 6.5 million barrels, compared to expectations of a rise of 200,000.
Economic news also piled pressure on oil prices, as data showed a slowdown in growth in the US private services sector in September.
2023-10-04 22:12:14
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