US Stocks Rise as Oil Drop Counters Treasury Yield Concerns
US stock markets ended Monday on a positive note, with major indices gaining ground despite concerns over rising Treasury yields. The Dow Jones Industrial Average climbed 0.18% to 51,267.90, the S&P 500 rose 0.66% to 7,773.95, and the Nasdaq Composite advanced 1.05% to 27,477.31. The gains were partly driven by a drop in oil prices, which offset worries about higher borrowing costs.
The 10-year Treasury yield continued its upward trajectory, reaching 5.312%, the highest level in over two decades. This rise stoked fears that elevated borrowing costs could weigh on equities, even if the Federal Reserve maintains steady policy. Oil prices also saw a decline, with Brent crude futures falling 1.89% to $100.32 per barrel and West Texas Intermediate crude dropping 1.8% to $89.43 per barrel.
Investors are eagerly awaiting the release of minutes from the Federal Reserve's latest meeting, set for Wednesday. These minutes could provide insights into the central bank's future monetary policy decisions. On the economic front, US service sector activity accelerated sharply in September, with the S&P Global services PMI jumping to 58.8, marking the strongest expansion in over five years.
Among the top performers in the Dow Jones were Cisco Systems Inc. (CSCO), Visa Inc. (V), and Dow Chemical Co. (DOW), while Intel Corp. (INTC) and Merck & Co. Inc. (MRK) led the decliners. The S&P 500 and Nasdaq 100 also saw significant movers, with Seagate Technology Plc (STX) and Illumina Inc. (ILMN) among the biggest gainers.