US Bond Treasury Yields Down
The benchmark 10-year yield fell 2.72 basis points to 5.22 per cent, inching away from the 24-year high of 5.364 per cent it hit last week. A toxic mix of inflationary pressure from elevated energy prices and worries about ballooning government debt has triggered several bond selloffs in recent weeks, pushing borrowing costs to multi-decade highs across the globe.
Traders are awaiting US inflation data on Wednesday for clues on the Federal Reserve’s policy path. They are pricing in an 80.6 per cent chance that it holds rates steady later this month, up from 51 per cent a month earlier, the CME FedWatch tool showed.
Oil prices eased as traders assessed supply risks from attacks on Saudi Arabia while weighing the prospect of additional diesel supplies from Russia. Brent crude futures dipped 0.9 per cent to $105.69 per barrel.
The dollar slipped from 18-month highs, along with a drop in yields and oil prices. The euro was last up 0.01 per cent at $1.1199, while the Japanese yen was at 158.31 per dollar.
The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, fell 0.34 per cent.Wall Street Stocks Under Scanner
The PHLX chip index fell 0.23 per cent, down for a fifth straight session. Micron Technology lost 3.6 per cent and Applied Materials dropped almost 7 per cent. Citigroup dipped 5.6 per cent and Goldman Sachs lost 0.2 per cent after both banks topped profit estimates.
Wells Fargo fell 3.1 per cent after its net interest income missed estimates, while JPMorgan Chase ended down 0.9 per cent following a rare profit miss.
Apple hit an intraday record high of $348.15 before closing up 0.1 per cent at $341.27, putting its stock market value at $4.98 trillion. Broadcom rose 0.7 per cent.
The PHLX chip index has lost more than 8 per cent in the past five sessions and it remains up over 70 per cent year-to-date, S&P 500 healthcare index fell 1.3 per cent on Tuesday, with Johnson & Johnson down 5.7 per cent despite topping profit estimates.
Bumble jumped almost 57 per cent after the dating-app operator agreed to go private in a $1.3 billion deal, Domino’s Pizza declined 4.8 per cent after scaling back its full-year sales outlook. Advancing issues outnumbered falling ones within the S&P 500 by a 1.1-to-one ratio.
The S&P 500 posted 18 new highs and five new lows; the Nasdaq recorded 47 new highs and 408 new lows. Volume on US exchanges was relatively light, with 14.8 billion shares traded, compared with an average of 17.6 billion shares over the previous 20 sessions.
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