US Stocks Climb as Treasury Yields Steady and Crude Prices Soften
The US stock market started the day on a positive note as major indices edged higher. The Dow Jones Industrial Average rose by 0.64%, reaching $53,098.00, while the S&P 500 gained 0.31% to $7,665.02 and the Nasdaq Composite was up 0.11% at $26,096.73.
The gains came despite concerns about a potential escalation of tensions between the US and Iran. However, steadier long-dated Treasury yields and softer crude prices helped calm markets. The 30-year yield was roughly half a basis point higher at 5.58%, while the benchmark 10-year note remained steady at 4.716%.
US Vice-President JD Vance said that economic pressure remains Washington's 'most effective tool' against Tehran, describing the standoff as a 'delicate dance'. He added that Iran has faced greater strain in recent weeks and claimed that US gasoline prices have fallen 'substantially' due to increased oil shipments through the Strait of Hormuz.
On the macro front, US business activity strengthened in August. S&P Global's flash manufacturing, services, and composite PMIs pointed to the fastest pace of private-sector growth in over four years. The composite PMI rose to 56.0 from 54.5, a 52-month high, driven by a sharp acceleration in the services PMI.
Some notable risers included Goldman Sachs Group Inc., American Express Co., and Caterpillar Inc., while Apple Inc. was one of the Dow Jones fallers. In the S&P 500, Freeport-McMoRan Inc and Albemarle Corp led the gains, while Coterra Energy Inc. fell by 8.62%.