US Stocks Bounce Back as Fed Signals Slower Tightening
US stocks in New York finished slightly higher after repeated swings in line with moves in US Government Bond yields.
The Dow Jones Industrial Average rose 20.51 points, or 0.04%, to close at 50,926.56 on October 1st (U.S. Eastern time). The Standard & Poor's 500 also increased by 14.91 points, or 0.19%, to 7,666.45, and the Nasdaq composite added 10.53 points, or 0.04%, to 26,871.60.
Stocks opened higher but came under pressure as selling in the bond market intensified early in the session. The U.S. 10-year Government Bond yield jumped intraday to 5.342%, the highest since April 3, 2002.
Later, as bargain hunting flowed into the Government Bonds market and Federal Reserve officials signaled a 'pace adjustment' in currency policy, stocks regained stability. Federal Reserve Vice Chair Philip Jefferson said that when adjusting policy going forward, they must carefully review data trends and evolving outlooks.