Bonds Fall Following $25 Billion Sale as Stocks Churn – US Market Wrap

Wall Street struggled to gain traction on Thursday, with the bond market digesting another large Treasury sale and stocks hovering near highs.

Bonds fell despite a strong $25 billion auction, which alleviated concerns about an oversupply. Equities closed little changed after the S&P 500 briefly exceeded 5,000 for the first time. Investors were cautious as they prepared for Friday’s consumer-price index revisions, recalling what happened a year ago: the update was significant enough to cast doubt on overall inflation progress.

Ahead of those figures, investors received a jobless claims reading, which added to evidence of a still strong labour market and supported central bank speakers’ recent cautious rhetoric. President Barkin of the Federal Reserve Bank of Richmond was the latest to reiterate that policymakers have time to be patient when it comes to rate cuts.

The S&P 500 finished at 4,997.97. As earnings season began, Walt Disney and Arm Holdings soared on positive outlooks, while PayPal Holdings fell on a disappointing forecast. Treasury 10-year yields increased three basis points to 4.15%. Bitcoin surpassed $45,000. Oil prices rose amid concerns about a potential cease-fire in the Israel-Hamas conflict.

The S&P 500 has more than doubled since its pandemic low in March 2020, with gains in the last year fueled by bets on a soft economic landing and optimism about the impact of artificial intelligence on corporate earnings.