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US stocks rose on Monday, extending positive momentum into the second half of the year.
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The yield on 10-year government bonds rose 13 basis points to 4.479%.
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Investors are looking to Friday’s jobs report to see how interest rates are moving.
U.S. stocks closed higher on Monday, kicking off the second half of the year. Prices rose despite bond yields surging during the session.
Stocks closed out the first half of 2024 with strong gains, with the S&P 500 rising 14% and the Nasdaq Composite rising 18%. The strength of tech stocks and investor confidence that the Federal Reserve will cut interest rates this year should keep the momentum going. However, fears of concentration have emerged in the market, as just a handful of stocks have helped drive the market to record highs.
Meanwhile, a changing outlook for the U.S. election has added uncertainty to bond markets, with yields on the 10-year Treasury note rising on Monday. After candidate Joe Biden and Donald Trump debated on Thursday, the odds of a Trump victory rose by about 6 percentage points, Goldman Sachs reported. Traders were also assessing volatility stemming from the European elections, as right-wing candidates led in France in the first round of the general election.
The yield on 10-year government bonds rose 12 basis points to 4.469%.
Federal Reserve officials Jerome Powell and John Williams will speak this week, setting the tone for this month’s policy meeting. But investors’ attention will be focused on the June jobs report, due Friday. Economists forecast that 190,000 jobs were added last month, a slowdown from May.
Any surprise in the jobs forecasts added last month could weigh on the Fed’s monetary policy going forward. Markets currently expect rate cuts to begin in November, according to CME FedWatch Tool data.
Chewy was one of the biggest stock market gainers on Monday after meme trading legend Keith Gill announced a $245 million stake in the company.
Here’s where the US indices stood shortly after the 4pm closing bell on Monday:
Here’s what else is happening today:
In commodities, bonds and crypto:
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West Texas Intermediate crude rose 2.3% to $86.85 a barrel. Brent crude, the international benchmark, rose 2.2% to $83.44 a barrel.
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Gold rose slightly by 0.19% to $2,330 an ounce.
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The yield on 10-year government bonds rose 12 basis points to 4.469%.
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Bitcoin rose 1.11% to $63,382.
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