Tomorrow’s Data At The Forefront Of Investor’s Minds – US Market Wrap

Bonds and stocks both increased following a strong $39 billion Treasury sale, which sparked expectations that the Federal Reserve might lower rates this year with the help of Wednesday’s inflation report.

Big tech led gains in equities as Apple jumped to a record. Banks remained under pressure, with giants like JPMorgan and Citigroup getting hit. Treasury yields fell across the curve. Demand in an auction of 10-year debt was strong, with the bid-to-cover ratio of 2.67 being the highest since February 2022, the month before the start of the tightening cycle.

The S&P 500 closed at a fresh all-time high. US 10-year yields fell seven basis points to 4.40%. Treasuries were also bid as unease over political upheaval in Europe intensified, triggering a rout in French bonds.

A host of Fed leaders have suggested in recent weeks that they see no rush to cut rates, with inflation more persistent and the outlook for growth staying solid.