The yield on the 10-year US Treasury surged, trading around 4.8%.
Thomson Reuters
Stocks traded mixed on Tuesday as bond yields surged after a blowout retail sales report.
Retail sales jumped 0.7% in September from the prior month, more than double forecasts.
Investors fretted over higher-for-longer interest rates as economic data remains hot.
US stocks finished mixed on Tuesday as investors took in higher Treasury yields and a hotter-than-expected retail sales report.
Retail sales rose 0.7% through the month of September, blowing past economists’ expectations for a 0.3% monthly gain.
The hot economic data means investors are pricing in higher-for-longer interest rates from the Federal Reserve, as officials have suggested rate cuts are out of the question until the economy sees more substantial cooling. The yield on the 10-year US Treasury surged 12 basis points, topping 4.8%.
“Retail sales showed a big upside surprise today, to the Fed’s dismay,” Bolvin Wealth Management Group president Gina Bolvin said in a note on Tuesday. “The odds are at a coin flip for the prospect of more hikes this year, and the market is pricing in cuts in July.”
Here’s where US indexes stood as the market closed at 4:00 p.m. on Tuesday:
S&P 500: 4,373.20, down 0.01%Dow Jones Industrial Average: 33,997.65, up 0.04% (13.11 points)Nasdaq Composite: 13,533.75, down 0.25%
Here’s what else is going on:
There are two signs the stock market’s euphoria is mirroring past bubbles – and it could end badly for investors.Americans now need to earn a record $115,000 to afford a typical home.The 30-year fixed mortgage rate hit a fresh 23-year high, edging closer to 8%.Treasurys crashed because everyone forgot they’re a bad inflation hedge, according to Wharton professor Jeremy Siegel.Long-term investors should be plowing 80% of their portfolios into stocks or hard assets, according to BlackRock’s Larry Fink.”Tesla could be in the midst of a strategic pivot.” Here’s what Wall Street expects from the EV maker’s 3rd-quarter earnings report.
In commodities, bonds, and crypto:
Oil prices rose, with West Texas Intermediate ticking 0.12% higher to $86.75 a barrel. Brent crude, the international benchmark, inched up 0.48% to $90.08 a barrel.Gold edged rose 0.21% to $1,924.20 per ounce.The 10-year yield surged 12 basis points to hover at 4.834%.Bitcoin slipped 1.04% to $28,411.