U.S. stocks rally as Treasury yields drop
Sep 29, 2022
New York [US], September 29: Wall Street's three major averages rebounded markedly on Wednesday after a recent sell-off, supported by falling Treasury yields.
The Dow Jones Industrial Average jumped 548.75 points, or 1.88 percent, to 29,683.74. The S&P 500 increased 71.75 points, or 1.97 percent, to 3,719.04. The Nasdaq Composite Index rose 222.14 points, or 2.05 percent, to 11,051.64.
All the 11 primary S&P 500 sectors ended in green, with energy and communication services up 4.4 percent and 3.17 percent, respectively, leading the gains.
The rally came after U.S. Treasury yields retreated from their highest levels in more than a decade.
The yield on the benchmark 10-year U.S. Treasury dipped to about 3.7 percent on Wednesday afternoon after briefly topping 4 percent earlier in the session for the first time since 2008.
The equity markets have usually moved negatively with bond yields, as higher bond yields would make equity investments less attractive.
U.S. stocks have been under considerable pressure this year by fears that the Federal Reserve's aggressive policy tightening could throw the economy into a recession.
Source: Xinhua
