Stocks Surge as Crude Oil Prices and Bond Yields Stabilize

The S&P 500 Index rose by 0.50% today, while the Dow Jones Industrial Average increased by 0.79%, and the Nasdaq 100 Index gained 0.17%. This recovery in stock index futures came after a retreat in crude oil prices and bond yields. Crude oil prices had surged to a 6-week high overnight due to US-Iran hostilities, but they turned lower today as US Energy Secretary Wright said that over 17 million bbl of oil went through the Strait of Hormuz on Monday.

This decline in crude oil prices led to a decrease in bond yields. The 10-year T-note yield fell by -1 bp to 4.79%, which benefited stocks. Additionally, New York Fed President Williams commented that inflation is continuing to trend down, further supporting the market.

However, not all economic news was positive for stocks today. July factory orders rose more than expected, but the Aug ADP employment change rose less than expected. Despite this mixed data, stock index futures continued to move higher.