Wall Street churns higher as bond yields pause, debt ceiling debate persists

- Advertisement -


NEW YORK (Businesshala) – Wall Street was seen in choppy trading on Wednesday, regaining some ground lost in the broad sell-off of the previous session, despite comments from US Federal Reserve Chairman Jerome Powell and concerns over ongoing debt limits. The initial gains were capped. Discussion.

FILE PHOTO: A Wall Street sign is pictured outside the New York Stock Exchange in New York October 28, 2013. Businesshala/Carlo Allegri

All three major US stock indexes ticked higher as Treasury yields halted their climb, with defensive sectors taking the lead as investors sought stability in a volatile market.

- Advertisement -

Still, all three remain on course to post monthly declines, with the Belvedere S&P 500 pulling off a seven-month winning streak.

“We have a rough patch, and you can’t say we’re done with these volatile days. September and October are weak for the market,” said Peter Tuz, president of Chase Investment Council in Charlottesville, Virginia.

“We have seven ‘up’ months, so what is usually the weakest month of the year, especially with the cross-current of inflation and the potential for higher taxes, doesn’t seem that way to me.”

Powell, speaking at an event at the European Central Bank, expressed his dismay at persistent supply chain problems, which could prop up inflation for longer than expected.

Prolonged wrangling over funding to the government on Capitol Hill and concerns over possible shutdowns and US credit defaults as Friday’s deadline draws near.

“The biggest negative surprise in the next few days could come from Washington and the result could be weakness until they raise the debt limit because there’s really no alternative,” Tuz said.

US Treasury yields stalled in recent days after a debt limit dispute surfaced in Washington.

The Dow Jones Industrial Average rose 256.64 points, or 0.75%, to 34,556.63; The S&P 500 rose 28.41 points, or 0.65%, to 4,381.04; And the Nasdaq Composite ended 56.88 points, or 0.39%, higher at 14,603.56.

Of the 11 key sectors in the S&P 500, all materials were in positive territory recently, with utilities receiving the largest percentage gains.

The Boeing Company provided the Dow the biggest lift ever after China’s aviation regulator’s successful 737 MAX test gave the planner a 3.9% increase.

Discount retailer Dollar Tree Inc jumped 16.4% after increasing its buyback authorization from $1.05 billion to $2.5 billion.

Drugmaker Eli Lilly gained 3.8% after Citigroup raised the stock’s rating from “neutral” to “buy.”

Advancing issues declining the 1.54-to-1 ratio on the NYSE; On the Nasdaq, a 1.07-to-1 ratio favored the decline.

The S&P 500 posted five new 52-week highs and two new lows; The Nasdaq Composite posted 27 new highs and 126 new lows.

Reporting by Stephen Culp; Additional reporting by Devik Jain in Bengaluru; Richard Chang. editing by

.

- Advertisement -

Stay on top - Get the daily news in your inbox

DMCA / Correction Notice

Recent Articles

Related Stories

Stay on top - Get the daily news in your inbox