The rates of 10-year US Treasuries, which jumped the day before yesterday to over 4% for the first time since last November, are back below the psychological threshold, giving investors an opportunity to return to positioning themselves on US equities.
At approximately 16.00 Italian time, the Dow Jones rose by almost 40 points (+0.15%); the S&P 500 is up 0.46%, the Nasdaq is up 0.74%.
Already yesterday, on Wall Street, the sentiment had received support from the statements of the president of the Atlanta Fed Raphael Bostic.
Though he said “the Fed may be forced to do more given high inflation,” Bostic indicated he is in favor of monetary tightening of 25 basis points, also speaking of a pause during the summer of 2023.
The US stock market thus closed the eve session in positive territory. The Dow Jones Industrial Average led gains, rising 1.05%, while the S&P 500 and Nasdaq Composite finished up 0.76% and 0.73%.
In the last few hours, the mood of market operators has been further supported by the publication of China’s PMI services index compiled by Caixin.
China’s services PMI for February posted the strongest expansion in six months, jumping to 55 points from 52.9 in January. Caixin underlined that the PMI services index stood at a value higher than the average of 53.7 points, supported above all by the reopening of the Chinese economy, which took place at the end of 2022 with the decision of the Beijing government to abandon the policy of restrictions and lockdowns launched against the Covid pandemic: the so-called Zero Covid policy.
In particular, looking at the components of the services PMI index, the growth of new export orders tested the record in almost four years.
Returning to rates on US Treasuries, after either new alert levels reached in recent sessions, or 10-year yields slow down significantly to 3.991%, while two-year rates, which yesterday shot up to the record since 2006, i.e. in 17 years, to 4.937%, down to 4.884%.
Wall Street is about to end the week in positive territory. The S&P 500 rallied from the start of the week through yesterday’s session close
0.28%, the Nasdaq and Dow Jones by about 0.6%.