The S&P 500 climbed Wednesday, on track to snap a three-day losing streak, as a pause in surging Treasury yields gave stocks room to recover. Gains in Nvidia and Johnson & Johnson lifted the Dow, while the 10-year yield backed off after touching its highest level since November 2023.
Stocks rose Wednesday for the first time in four sessions as U.S. Treasury yields took a breather from a run-up that had pushed them to multiyear highs. The S&P 500 traded up 0.4%, while the Nasdaq Composite gained 0.3%.
The Dow Jones Industrial Average added 233 points, or 0.4%, boosted by gains in shares of Nvidia and Johnson & Johnson. All three benchmarks were on track to snap a three-day losing streak that had been driven by elevated bond yields.
Treasury yields ease after hitting 2023 high
The benchmark 10-year Treasury note yield hit a high of 4.818% on Wednesday, a level not seen since November 2023, before easing back to trade near the flatline. Yields in the U.K., Germany and France also rose, while Japan's 10-year government bond yield traded around multi-decade highs.
Jay Hatfield, CEO of Infrastructure Capital Advisors, told CNBC that oil is the key driver behind the market's move. According to CNBC: "why the market is able to get a little rally today, because oil's topping out". He added that the market remains rangebound in a seasonally weak period.
Oil climbs on renewed U.S.-Iran tensions
West Texas Intermediate crude futures traded above $91 per barrel, while Brent crude futures traded above $95 a barrel. The gains came as the U.S. launched more military strikes on Iran, raising concern that the conflict could escalate further.
Hatfield said he doubts a peace deal between Iran and the U.S. is imminent, but he expects the recent rise in oil prices to be short-lived. He said he expects the S&P 500 to bottom out at 7,500, adding that oil will likely trend down over the next six months as non-OPEC production ramps up.
Source: US Top News and Analysis
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