Five-day bond slump boosts equities, US equity markets climb, and US crude oil prices rebound
The five-day bond slump has given a boost to equities, with US equity markets climbing and the S&P 500 and Nasdaq closing at record highs. Chip maker Nvidia’s 5.2% gain contributed to the market surge, making it the third US company to surpass $3 billion in market value. The decline in government bond yields also played a role in supporting the market, with the yield on the benchmark 10-year US Treasury note falling for the fifth consecutive trading day to 4.289%, its lowest settle since March.
In other market news, US crude oil prices climbed 1% on Wednesday, rebounding from four-month lows, as hopes of an interest rate cut by the US Federal Reserve in September outweighed concerns about demand after an Energy Information Administration report indicated a jump in US crude stocks. Wheat futures continued lower, with Chicago soft wheat down for the sixth day in a row, while corn and soy also drifted down as traders monitored US weather and crop losses in South America.
Meanwhile, US gold prices gained more than 1% on Wednesday as bond yields fell following weaker-than-expected US private payrolls data, boosting expectations of a Federal Reserve interest rate cut later this year. The June contract closed at $2,354.10 per ounce.
Overall, the market trends indicate a positive outlook for equities and commodities, with investors closely monitoring economic indicators and geopolitical developments to make informed decisions in the ever-changing financial landscape.