S&P 500, Nasdaq hit record highs as Treasury yields, oil prices fall

US stocks opened higher on Tuesday, October 6, with the S&P 500 hitting a fresh intraday record as lower oil prices and easing Treasury yields boosted investor sentiment. Gains in chipmakers and other technology stocks also supported the market.

The S&P 500 was up 0.5%, while the Dow Jones Industrial Average gained 189 points, or 0.4%. The Nasdaq Composite advanced 0.6% to a record intraday high.

The move extends a rally from the previous session, when the Nasdaq closed at an all-time high. Investors have remained focused on the upcoming earnings season and continued enthusiasm around artificial intelligence, despite volatility in global bond markets.

Chip stocks gain

Chipmakers led some of the gains in technology stocks. Advanced Micro Devices rose 2%, while Nvidia and Broadcom gained around 1% each.

Nvidia and other major technology names have helped drive the recent advance in US equities, with investors continuing to favour companies seen as beneficiaries of the artificial intelligence boom.

The S&P 500 is now at a fresh record intraday high, while the Nasdaq also reached a new peak.

Treasury yields, oil prices fall

The benchmark 10-year Treasury yield fell 5 basis points to 5.256%, while the 30-year yield declined more than 3 basis points to 5.625%. Both yields had climbed to levels not seen since 2002 on Monday.

Lower yields eased some pressure on equities, particularly growth and technology stocks, which are sensitive to changes in borrowing costs.

Oil prices also moved lower, providing further support to stocks. Brent crude fell about 2% to around $98 a barrel, while West Texas Intermediate futures declined 2% to roughly $87 a barrel.

Fed minutes in focus

Investors are now looking ahead to the minutes from the Federal Reserve's September meeting, due on Wednesday, for clues on the central bank's policy outlook.

The minutes could offer further insight into policymakers' views on the economy, inflation and interest rates as markets assess the path for monetary policy.

Stocks entered Tuesday's session after another strong performance on Monday, with the Nasdaq Composite closing at a record high and technology shares remaining at the centre of the rally.

US stock futures rise as Treasury yields ease after Nasdaq hits record high

US stock futures rose on Tuesday as Treasury yields eased, extending a rally that pushed the Nasdaq Composite to a record high in the previous session.

S&P 500 futures were up 0.3%, while Dow Jones Industrial Average futures gained 215 points, or 0.4%. Nasdaq-100 futures advanced 0.4%.

The benchmark 10-year US Treasury yield fell 3 basis points to 5.277%, while the 30-year yield slipped to around 5.636%. Both yields had climbed to their highest levels since 2002 on Monday.

The retreat in bond yields offered some relief to equities after a sharp rise in borrowing costs in recent weeks. Investors are also turning their attention to the upcoming corporate earnings season and continued enthusiasm around artificial intelligence stocks.

Nvidia, tech stocks in focus

The Nasdaq Composite closed at a record high in the previous session, helped by gains in Nvidia and other technology stocks.

Nvidia shares were higher in premarket trading, along with Meta Platforms and Amazon, keeping technology stocks in focus ahead of the upcoming earnings season.

The S&P 500 remained less than 1% below its record high.

Bond markets have been volatile over the past six weeks, Morgan Stanley Wealth Management investment chief Lisa Shalett said in a note to clients, citing a potentially new Federal Reserve policy framework, economic growth and elevated oil prices amid the ongoing West Asia conflict.

“Nevertheless, while intraday implied volatility has risen, the six-week stretch has not reached the extremes that catalyzed the 2022 equity bear market,” Shalett wrote, according to CNBC.

Asian markets were mixed on Tuesday. Japan's Nikkei 225 rose 0.29%, while South Korea's Kospi slipped 0.23%. Australia's S&P/ASX 200 gained 0.53% and Hong Kong's Hang Seng Index advanced 0.95%.

Mainland Chinese markets remained closed for the Golden Week holiday.

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