US stocks extend rally, Treasury yields fall after solid gains, economic data

NEW YORK, Oct 18 (Reuters) – Wall Street stocks closed higher and Treasury yields led a risky rally on Tuesday after good earnings and better-than-expected factory data.

The S&P 500 posted broad gains on Monday, lifting major U.S. stock indexes to close by about 1% or more on the session, and all sectors advanced.

Meanwhile, benchmark Treasury yields were last lower after swinging through the day.

“The market was a little oversold leading up to Monday and people were worried about what was going to happen over the weekend. People felt a little bit better heading into the week,” said Robert Pavlik, senior portfolio manager at Dakota Wealth in Fairfield, Conn.. “Short cover and miss. you get a combination of fear.”

Better-than-expected quarterly results Goldman Sachs Group Inc (GS.N), Johnson & Johnson (JNJ.N) and Lockheed Martin (LMT.N) set the tone with strong industrial product data providing signs of economic strength despite central banks tightening monetary policy to fight inflation.

Confidence has now entered the market “with the expectation that a recession is coming and that the Fed will raise interest rates, maybe a pause next year,” Pavlik said. “Without all that weight, the market could go higher after the selloff.”

Dow Jones Industrial Average (.DJI) The S&P 500 rose 337.98 points, or 1.12%, to 30,523.8 (.SPX) Up 42.04 points or 1.14% to 3,719.99 points and the Nasdaq Composite (.IXIC) It rose 96.60 points, or 0.9%, to 10,772.40.

Britain’s finance minister Jeremy Hunt’s policy shift on Monday continued to boost investor sentiment.

European shares with help from the tech sector extending its policy U-turn rally – they closed the day modestly higher.

Pan-European STOXX 600 index (.STOXX) 0.34% and MSCI’s index of worldwide shares rose (.MIWD00000PUS) It increased by 1.13%.

Emerging market stocks rose 1.50%. MSCI’s broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) Japan’s Nikkei rose by 1.55% (.N225) It increased by 1.42%.

Treasury revenues It fluctuated throughout the session but went down at the closing bell.

The benchmark 10-year note yield was last at 3.9922%, up from 4.015% late Monday.

The 30-year note last traded at 4.0142%, up 1/32 from 4.015% on Monday.

The British pound fell after gaining nearly 2% on Monday green money against a basket of world currencies, but the dollar was flat of late, with gains driven by risk-on investor sentiment.

The dollar index rose by 0.02%, and the euro rose by 0.17% to $0.9855.

The Japanese yen lost 0.12% to $149.22, while sterling fell 0.23% to $1.1327 on the day.

Raw prices US stockpiles fell on fears of a build-up and signs of slowing global demand.

US crude oil fell by 3.09% to $82.82/barrel, while Brent oil fell by 1.74% to $90.03.

A flat dollar helped support goldnominal earnings.

Spot gold rose 0.1% to $1,650.94 an ounce.

Reporting by Stephen Kulp; Additional reporting by Elizabeth Howcroft in London; Edited by Alison Williams, Will Dunham and Deepa Babington

Our standards: Thomson Reuters Trust Principles.