US stocks finished in the green on Wednesday as both the S&P 500 and the Nasdaq Composite once again closed at all-time highs. 📈 The Dow closed 0.3%, or 84 points, higher 📈 The S&P finished 1% higher 📈 The Nasdaq closed up 1.7%
Investors are hungry for opportunities, which is why the stock market is near record highs. That's why prices for safer assets, such as US Treasuries, have come down. And as bond prices decrease, yields increase.
Government bond yields dived earlier in the year, but seem to have bucked the trend for now. The only question is whether this new trend will stick. "Bond investors are either not to keen on the idea that Fed Chairman Jerome Powell and other central bank heads will outline an even more accommodative approach to inflation, or they expect the global recovery to pick up steam which would call for tighter monetary policy," said Fawad Razaqzada, market analyst at ThinkMarkets of the price trend.Officials from the Federal Reserve and other central banks are meeting -- virtually -- in Jackson Hole this week.
Another way to explain rising yields doesn't even go as far as thinking about future monetary policy. Instead,"investors are just booking profit and as soon as priced become a little cheap again, they will step in to buy the dip as they have done so for many years now," Razaqzada said.
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Momentum stocks put S&P 500, Nasdaq on course for new highsWall Street advanced on Wednesday as upbeat earnings kept investors focused on momentum stocks that have outperformed since the onset of the coronavirus pandemic.
Read more »
S&P 500, Nasdaq close at record highs amid encouraging economic data | Markets InsiderUS stocks jumped on Wednesday as investors cheered better-than-expected economic data and strong corporate earnings reports. The S&P 500 and Nasd...
Read more »
Op-ed: Rethinking stock benchmarks as tech-heavy Nasdaq outpaces S&P 500, DowAre we deluding ourselves in continuing to compare our performance to the S&P 500 index?
Read more »
Stocks finish higher; S&P 500, Nasdaq sweep to new recordsU.S. stocks closed mostly higher Tuesday, pushing the S&P 500 and Nasdaq indexes to another round of record highs, as investors took some comfort from...
Read more »
Why the S&P 500 cares less about who’s president — particularly in their first yearInvestors fleeing the stock market just prior to President Obama's White House tenure missed a 26% return in 2009, and a 22% gain in 2017 for those sellers...
Read more »
S&P 500 shakes off a bumpy start, pushes to another recordStocks were mixed on Wall Street on Tuesday, but gains were strong enough for tech companies and other pockets of the market to carry the S&P 500 to its fourth straight gain and another record high.
Read more »