Traders work on the floor of the New York Stock Exchange during morning trading on September 23, 2024 in New York City.
Michael M. Santiago | Getty Images
The S&P 500 rebounded on Tuesday following a losing session on Wall Street with rising oil prices and bond yields in focus.
The S&P 500 gained 0.4% and the Nasdaq Composite rose 0.6%. The Dow Jones Industrial average lost 50 points.
Stocks are coming off a rocky session. The Dow finished nearly 400 points lower on Monday, while the S&P 500 slid close to 1%. Technology stocks felt the brunt of Monday’s declines, pushing the Nasdaq Composite down about 1.2%.
Some tech shares like Nvidia and Super Micro Computer were higher Tuesday. Nvidia added about 1.6% and Super Micro gained 3.3%. Wells Fargo gained 1% following an analyst upgrade.
West Texas Intermediate oil futures advanced above $77 per barrel to start the week, but were back down about 2% early Tuesday as traders monitored Israel’s expected retaliation to Iran missile attacks and U.S. efforts to stave off an even wider war in the region.
Rising bond yields are putting downward pressure on the market to start the week. Notably, the 10-year Treasury yield climbed above 4% Monday. The 10-year Treasury yield was slightly higher to 4.05% on Tuesday, its highest level since August 1.
Stocks have been volatile in the new trading month as investors have grown increasingly fearful of escalating conflict in the Middle East. The S&P 500 is off by a little more than 1.1% in October following a 2% gain in September.
The market rallied a bit to end last week after a blockbuster jobs report. The Dow even managed to notch a new all-time closing high on Friday. But that enthusiasm faded this week as investors reasoned that now the Federal Reserve may not be as aggressive with future rate cuts with the labor market still strong.
“Initially, the market rallied on that really good economic news,” said Larry Tentarelli, chief technical strategist of the Blue Chip Daily Trend Report, of the labor market data. “I think what you’ve got now is the market adjusting to higher bond yields.”
Investors will watch Tuesday for economic data on small businesses and the trade deficit. They’ll also monitor speaking engagements scheduled throughout the day for central bank leaders including Boston Federal Reserve President Susan Collins and Atlanta Fed President Raphael Bostic. A key inflation reading — September’s Consumer Price Index — looms on Thursday.
