US Treasury Cuts Quarterly Borrowing – US Market Wrap

– Wall Street’s busy week kicked off with gains in both stocks and bonds, with the Treasury surprising several traders after cutting its quarterly borrowing estimate to $760 billion.
– Treasury yields fell, lifting the tech-heavy Nasdaq 100 up 1% ahead of results from five megacaps with a combined market value of more than $10 trillion. Aside from the barrage of earnings of the coming days, investors are also anticipating the Federal Reserve decision and a raft of economic reports from consumer confidence to jobs. The news came just a few days before the Treasury’s so-called quarterly refunding announcement and drew investors’ attention amid all the concern about a widening budget deficit.
– The S&P 500 closed above 4,900, with Tesla leading gains in megacaps. The Treasury 10-year yield dropped seven basis points to 4.07%. The oil price dropped below $77 a barrel after last week’s rally pushed futures into overbought territory. Meanwhile, ample crude supplies outweighed military escalation in the Middle East. Amazon cancelled its planned $1.4 billion acquisition of Robot, sinking shares of the Roomba maker.
– With results from Microsoft, Alphabet, Apple, Amazon, and Meta Platforms this week, it is also the busiest week for earnings this season. However, with the majority of the megacaps in record territory, there are worries that investors are overexposed to a small number of stocks, which could lead to some pain if quarterly results fall short of expectations.