2023-09-28 23:06:10
By Lewis Krauskopf and Ankika Biswas and Shashwat Chauhan
(Reuters) – Wall Street’s main indexes closed higher on Thursday as investors assessed the latest batch of economic data as a recent rise in U.S. government bond yields took a breather ahead of a key report on the economy. inflation.
Investors were also watching developments in Washington to see whether lawmakers can avoid a government shutdown.
The recent move in Treasury yields to 16-year highs has hung over the stock market, which retreated after the Federal Reserve last week signaled a long-term stance for tougher monetary policy on inflation.
The benchmark 10-year Treasury yield, which held around 4.6%, brought “relief,” said Matt Stucky, senior portfolio manager at Northwestern Mutual Wealth Management Co.
“The markets in general over the last few days have been very, very choppy,” Stucky said.
“A bit of a recovery against the trend is to be expected after three or four very negative days.”
The Dow Jones rose 0.35%, to 33,666.34 points, while the S&P 500 advanced 0.59%, to 4,299.70 points. The Nasdaq Composite rose 0.83%, to 13,201.28 points.
Among S&P 500 sectors, the communications services group gained 1.2%, while the materials sector rose 1%. The rate-sensitive utilities sector sank 2.2%, extending its recent decline.
The S&P 500 has fallen more than 6% since the end of July but remains up about 12% for 2023.
Data showed that the US economy maintained a very solid growth rate in the second quarter.
Separate readings showed initial jobless claims rising slightly last week and a larger-than-expected drop in existing home purchase contracts in August.
Investors were looking ahead to Friday’s personal consumption expenditures price index for the latest view on inflation.
In Washington, the Democratic-led U.S. Senate advanced a bipartisan temporary funding bill aimed at avoiding the fourth partial government shutdown in a decade.
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