On Monday, U.S. equities struggled to make gains, with tech firms leading the Nasdaq, as benchmark Treasury rates increased on waning hope for a debt limit agreement from Washington.
Aside from the New York Federal Reserve's dismal Empire State Manufacturing Report, none of the three main U.S. stock indices shown much confidence as the first quarter earnings season came to a close.
However, the tech-heavy Nasdaq comfortably outperformed thanks to rising semiconductor equities.
Apart from the political dispute on Capitol Hill between President Joe Biden and congressional Republicans over a debt ceiling agreement, market investors had nothing to pay attention to.
As for the debt limit negotiations, there seems to be some hope, according to Joseph Sroka, chief investment officer of NovaPoint in Atlanta. “While some of that may be political posturing, it is currently helping the market a little bit.”
“You have a split government, and those negotiations tend to be more'stand-off' negotiations,” Sroka remarked. “It's getting a little more hyped up than usual.”
The S&P 500 increased 6.63 points, or 0.16%, to 4,130.71, while the Nasdaq Composite increased 65.93 points, or 0.54%, to 12,350.68. The Dow Jones Industrial Average decreased 7.61 points, or 0.02%, to 33,293.01.
As investors focused on continuing discussions over the U.S. debt limit and Turkey's upcoming election runoff, European markets concluded the day with gains.
The global stock market index MSCI increased by 0.33% and the pan-European STOXX 600 index increased by 0.25%.
Emerging market equities increased by 0.53%. While Japan's Nikkei gained 0.81%, the MSCI's largest index of Asia-Pacific equities outside of Japan ended the day 0.84% higher.
Even after Atlanta Fed President Raphael Bostic said that he would vote to keep interest rates constant if the Fed's monetary policy meeting were to take place today, longer-dated U.S. Treasury yields increased as a result of persistent concerns about slowly declining inflation.
The yield on benchmark 10-year notes recently decreased by 11/32 to 3.5037% from 3.463% late on Friday.
The 30-year bond's price recently dropped 35/32 to a yield of 3.8401% from a late-Friday high of 3.777%.
After reaching a five-week high versus a basket of international currencies, the dollar retreated, holding onto gains despite debates over the debt ceiling and weaker-than-expected Empire State industrial statistics.
The euro increased 0.24% to $1.0874 while the dollar index dipped by 0.25%.
At 136.07 per dollar, the Japanese yen lost 0.24% ground to the dollar, while the British pound gained 0.55% today and was last trading at $1.2526.
Wildfires in Alberta, Canada, added to anxieties about limiting supply, pushing up oil prices, although gains were constrained by concerns about declining demand.
U.S. crude increased by 1.53% to conclude at $71.11 a barrel, while Brent increased by 1.43% to close at $75.23 per barrel.
U.S. crude increased 1.53% to reach $71.11 a barrel, while Brent was recently up 1.51% to reach $75.29.
As the debt limit impasse continued, gold edged up against the declining dollar as investors clung to the notion of interest rate reduction by year's end, despite statements from Fed officials.
An ounce of spot gold increased by 0.3% to $2,016.33.