US stocks continue rally, Treasury yields drop after solid gains, economic data

NEW YORK, October 18 (Reuters) – Wall Street stocks closed higher Tuesday as upbeat earnings and better-than-expected factory data fueled the risk-driven rally and Treasury yields fell.

Building on Monday’s broad gains, the S&P 500 led major US stock indices to end the session up about 1% or more, and industries are generally moving forward.

Meanwhile, benchmark Treasury yields fluctuated throughout the day, last lower.

“The market was a little oversold going into Monday and people were worried about what was going to happen over the weekend. People went into the week feeling a little better,” said Robert Pavlik, senior portfolio manager at Conn, Fairfield Dakota Wealth. . . . “You get a combination of short cover and fear of kidnapping.”

Better-than-expected quarterly results Goldman Sachs Group Inc. (GS.N), Johnson and Johnson (JNJ.N) and Lockheed Martin (LMT.N) set the tone with robust industrial output data It is showing signs of economic strength even as central banks tighten monetary policy to combat inflation.

“A recession is coming, and the belief that the Fed will raise interest rates in the hope that perhaps a recession may come next year,” Pavlik said, is now on the market. “Without all that weight, the market could go higher once it’s sold out.”

Dow Jones Industrial Average (.DJI) The S&P 500 index rose 337.98 points, or 1.12%, to 30,523.8. (.SPX) It earned 42.04 points, or 1.14%, reaching 3,719.99 and the Nasdaq Composite. (.IXIC) It added 96.60 points, or 0.9%, to 10,772.40.

Monday’s policy change by British finance minister Jeremy Hunt continued to raise investor sentiment.

European stocks He extended his U-turn rally to close the day a little higher with the support of the tech sector.

Pan-European STOXX 600 index (.STOXX) It rose 0.34% and MSCI’s global stock benchmark (.MIWD000000PUS) 1.13% won.

Emerging market shares rose 1.50%. MSCI’s largest index of Asia-Pacific shares outside of Japan (.MIAPJ0000PUS) The Japanese Nikkei index closed with 1.55% gains. (.N225) It rose 1.42%.

Treasury yields fluctuated throughout the session but declined further with the closing bell.

The benchmark 10-year bond yield stayed at 3.9922%, up from 4.155% late Monday.

The price of the 30-year bond most recently rose 1/32 from 4.15% to 4.142% late Monday.

The British pound fell after gaining nearly 2% on Monday, which also rose dollar Against a basket of world currencies, but the dollar was last essentially flat, its gains were kept in check by risk-averse investor sentiment.

The dollar index rose 0.02% and the euro rose 0.17% to $0.9855.

The Japanese yen was down 0.12% against the dollar to trade at 149.22 against the dollar, while the pound was trading at $1.1327, down 0.23% for the most recent day.

raw prices It fell amid fears that US inventories would rise and signs of dwindling global demand.

US crude was down 3.09% to $82.82 a barrel, while Brent was down 1.74% on the day to settle at $90.03 a barrel.

unchanged dollar helped support goldnominal gain.

Spot gold rose 0.1% to $1,650.94 an ounce.

Reporting by Stephen Culp; additional reporting by Elizabeth Howcroft in London; Editing Alison Williams, Will Dunham and Deepa Babington

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