by Sinéad Carew and Shashwat Chauhan
(Reuters) – The New York Stock Exchange ended higher on Tuesday, as dovish comments from officials at the U.S. Federal Reserve (Fed) caused bond yields to fall and reassured investors who were closely monitoring the situation in the Middle East. -East.
The Dow Jones index gained 0.40%, or 134.65 points, to 33,739.30 points.
The broader S&P-500 gained 22.58 points, or 0.52%, to 4,358.24 points.
The Nasdaq Composite advanced 78.61 points (0.58%) to 13,562.84 points.
Following comments from other Fed officials, Atlanta Fed President Raphael Bostic said there was no need for the U.S. central bank to raise interest rates further, adding that no recession was on the horizon according to him.
The yield on 10-year U.S. Treasuries saw its biggest one-day decline since August, falling from a 16-year high.
As oil prices fell, investors continued to closely follow the latest news from the Middle East, as Israel intensified its strikes on Gaza, razing entire neighborhoods of the Palestinian enclave. “If there is an escalation of tensions, bond yields could decline further” as a refuge in a context of increased uncertainty, commented John Praveen, director of Paleo Leon.
“Everyone has one eye on the conflict in the Middle East and the other on the trend in bond yields. The decline in Treasuries is the main catalyst of the day,” he said.
Although he reiterated the Fed’s determination to bring inflation back towards the 2% objective, central bank governor Christopher Waller did not comment on his economic outlook or on the continuation of monetary policy.
A large majority of traders expect the Fed to keep rates unchanged at its next meeting in November, according to FedWatch tool.
Important inflation data is expected this week, with producer prices and consumer prices in the United States.
Investors are also awaiting the minutes of the September Fed meeting and the start of the earnings season.
Ten of the eleven main sectors of the S&P-500 ended the session in the green. Only energy, up more than 3% the day before, fell by 0.02%.
On the value side, among the movements to note, the 1.9% increase in PepsiCo after the company raised its annual turnover forecast for the third time. Rivian Automotive jumped 4.6% after UBS raised its recommendation to “buy” from “neutral”.
( Jean Terzian)
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