Treasury Yields Fall After Reaching Their Highest Levels in 2024 – US Market Wrap

The world’s largest bond market rebounded, and stocks closed higher, as traders braced for key inflation data that will shape the Federal Reserve’s next moves.

Treasuries rose, with 10-year yields falling from their highest levels in 2024. Equities recovered losses in the final stretch of New York trading, with Tesla leading the charge in megacaps. Nvidia plummeted after Intel unveiled a new version of its artificial intelligence chip. Boeing fell following news that the Federal Aviation Administration is investigating whistleblower claims about safety issues with the 787 Dreamliner.

With no relevant economic data scheduled, traders focused on Wednesday’s consumer price index. Markets have tempered bets on Fed cuts as US economic data remains strong, with officials arguing against the need for easing.

The S&P 500 finished above 5,200. US 10-year yields fell six basis points to 4.36%. Oil dropped as traders assessed diplomatic efforts in the Middle East. Gold rose to a fresh record. The loonie underperformed ahead of the Bank of Canada decision on rates amid bets policymakers will turn more dovish.