A day after its winning streak snapped, the S&P 500 was back on the rise on Wednesday.
The S&P 500 was up 0.2%. The Dow Jones Industrial Average was up 114 points, or 0.3%. The Nasdaq Composite was up 0.3%.
The yield on the 2-year Treasury note was down to 3.57%. The 10-year yield was down to 4.11%.
The iShares Semiconductor ETF was flat after rallying furiously in recent months on a wave of headlines related to AI and semiconductor firms inking deals to drive the AI infrastructure build out.
With the government shut down, there hasn’t been much counterprogramming for those betting lower interest rates will be good for stocks and prevent the economy from deteriorating too much to hit corporate earnings. The U.S. dollar and gold also continued to rally.
“The dollar bounce is likely to persist as long as its main drivers remain in place: lack of information about the US economy due to the Federal shutdown; concerns about the attraction of the euro because of its trade-weighted appreciation, worries about French politics and recent mixed economic data; and last but by no means least, fears of yen-unfriendly policies in Japan,” writes Kit Juckes, chief FX Strategist at Société Générale.
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