Wall Street Hits Records as Oil Stabilizes and Bond Yields Retreat

Wall Street indexes reached new all-time highs on Tuesday, as steady oil prices and retreating bond yields lifted investor sentiment. The S&P 500 rose about 0.6%, the Nasdaq gained 0.45%, and the Dow Jones Industrial Average climbed 0.5%. European stocks also advanced, with the STOXX 600 up 0.5% and MSCI's global stock gauge rising 0.6%.

Bond markets saw some relief after France's contested budget had sparked concerns about euro zone debt stress. France's 10-year bond yield dipped to 4.7%, down from its highest level since the 2000s. The euro stabilized at 1.126 after hitting a 17-month low, though political uncertainty deepened with Spain's snap election announcement.

Investors are now focusing on the upcoming earnings season, with expectations of 27% growth in S&P 500 earnings, largely driven by AI-driven growth. Nvidia, the world's most valuable company, edged up 0.14%, nearing a $6 trillion market value. Oil prices also saw modest gains, with Brent crude settling at $100.6 a barrel and WTI crude at $89.44.

Strategists at PIMCO anticipate stable global growth and moderating inflation as energy price shocks fade. Meanwhile, the dollar weakened against major currencies, with the dollar index falling 0.3% after recent gains. Long-dated US Treasury yields also eased, with the 10-year yield at 5.28% and the 30-year yield at 5.65%. Spot gold rose 0.7% to $4,168 an ounce.