Wall Street Rises as Treasury Yields and Oil Prices Cool
Wall Street started Tuesday on a strong note, with major indices posting gains as Treasury yields and oil prices retreated from recent highs. The Dow Jones Industrial Average climbed 227 points, while the S&P 500 and Nasdaq Composite advanced 0.49% and 0.57%, respectively. The S&P 500 remains just 0.6% below its record high, while the Nasdaq closed at a new high on Monday, boosted by tech stocks.
Technology stocks led the charge, with Nvidia rising 0.9% and nearing a $6 trillion market value. Advanced Micro Devices gained 0.12% after CEO Lisa Su announced plans to boost chip supply in 2027 to meet AI demand. Other major tech players, including Meta, Tesla, and Amazon, also saw gains.
Investors are now focusing on the upcoming third-quarter earnings season, with analysts expecting S&P 500 earnings to surge over 30% year-over-year. The 10-year Treasury yield fell to 5.29%, while the 30-year yield dropped to 5.66%, both retreating from multi-year highs. A weaker-than-expected US payrolls report has lowered expectations for a Fed rate hike in October, though a December increase remains likely.
Oil prices also declined, with Brent crude falling 2.3% to around $98 per barrel and West Texas Intermediate dropping 1.49% to roughly $88. The drop followed an increase in Middle Eastern crude exports and the G7’s decision to release emergency stockpiles. Meanwhile, Option Care Health surged 32.8% after a $5.8 billion acquisition deal, and Constellation Energy rose 12.7% following a major power agreement with Google.