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Equities rebound to close higher as surging Treasury yields recede
Yahoo Finance • • business
Key Points:
- US stocks rebounded from early losses to close slightly higher, with the S&P 500 recovering from a two-week low as a global bond selloff reversed and Treasury yields declined.
- Economic data showed a strong labor market with initial jobless claims below expectations, fueling concerns about persistent inflation and potential Fed rate hikes.
- Treasury yields, which had reached multi-decade highs, dropped after Fed Vice Chair Philip Jefferson signaled possible patience before further rate increases, easing market fears.
- The energy sector led gains, boosted by rising oil prices following China’s suspension of fuel exports, while technology stocks, including Accenture and Micron Technology, showed strength on positive earnings forecasts.
- Market expectations for a Fed rate hike in October fell sharply, with investors pricing in only a 28.2% chance of an increase, reflecting softer inflation data and cautious Fed comments.
