US Stock Mixed as Treasury Yield Hits 2.5%
US stocks were mixed in choppy trade, and Treasury yields surged ahead of a meeting of the Federal Reserve this week in which interest rates are all set to rise and amid diplomatic manoeuvres to end Russia’s invasion of Ukraine.
The Dow Jones Industrial Average rose 0.6% to 33,155.57, with the S&P 500 up less than 0.1 to 4,210.22 after midday on Monday. The Nasdaq Composite bucked the intraday trend, trading down 1% to 12,720.46.
The energy sector was the lone decliner, while financials led the gainers. The probability that policymakers will increase the Fed funds rate to 0.25%-to-0.5% from the current zero-to-0.25% is 99.8%, according to the CME Group’s Fed Watch Tool.
The probability for a 25 basis-point increase was below 40%, and the chances for a 50 basis-point jump was more than 60% a month ago on Feb. 14.
The US 10-year yield jumped more than nine basis points to 2.11%, its highest since July 2019. Gold for April delivery sank $25.9 to $1,959.3 per ounce after touching $2,075 last week when the West Texas Intermediate crude oil futures surpassed the $130 mark.
Crude oil plunged by 7.5% at $101.12 a barrel by early Monday afternoon.
US National Security Adviser Jake Sullivan began talks Monday with China’s Communist Party Politburo member Yang Jiechi, Bloomberg reported, citing people familiar with the matter. The US is seeking Beijing’s help in exerting influence on President Vladimir Putin to end the war.
Meanwhile, CNN reported Russian airstrikes hit a large military base near the western city of Lviv, which is close to Poland’s border, a NATO member. #US Stock Mixed as Treasury Yield Hits 2.5%
