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Stocks Get Tech Boost as Treasury Yields Stabilize: Markets Wrap

(Bloomberg) — Stocks rebounded after their worst day in a month and bond yields stabilized as traders waded through the latest comments from Federal Reserve officials for clues on the central bank’s next steps.

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Nvidia Corp. led gains in chipmakers on news its partner Hon Hai Precision Industry Co. plans to boost server capacity to meet stronger-than-anticipated demand for chips used to develop AI. US-listed Chinese stocks tumbled as Beijing stopped short of launching more major stimulus, disappointing traders looking for more fuel for a world-beating stock rally. Treasury two-year bonds outperformed after the recent rout.

“While stronger US jobs data (coupled with a firmer ISM Services release) bolster our confidence for a soft landing, the US data is not so strong that the Federal Reserve’s contribution to the global rate-cutting cycle looks set to end,” said Mark Haefele at UBS Global Wealth Management. “We therefore maintain our conviction for investors to position for lower rates.”

Corporate Highlights:

  • Hindenburg Research is short Roblox Corp., the firm said in a post on X.

  • Honeywell International Inc. plans to spin off its advanced materials division, the latest move by the industrial conglomerate to reshape its portfolio and streamline its holdings.

  • PepsiCo Inc. trimmed its revenue outlook for the year as cash-strapped consumers, boycotts in the Middle East and a major recall hit volumes of its food and beverages.

  • Qualcomm Inc. was dowgraded by KeyBanc Capital Markets to sector weight from overweight.

  • E-signature company DocuSign Inc. will join the S&P Midcap 400 Index before trading opens Oct. 11.

  • Ares Management Corp. agreed to acquire GLP Capital Partners Ltd.’s operations outside of China for up to $5.2 billion, in one of the biggest recent combinations in the alternative asset management industry.

Key events this week:

  • Fed minutes, Wednesday

  • Fed’s Lorie Logan, Raphael Bostic, Austan Goolsbee and Mary Daly speak, Wednesday

  • US initial jobless claims, CPI, Thursday

  • Fed’s John Williams and Thomas Barkin speak, Thursday

  • JPMorgan, Wells Fargo kick off earnings season for the big Wall Street banks, Friday

  • US PPI, University of Michigan consumer sentiment, Friday

  • Fed’s Lorie Logan, Austan Goolsbee and Michelle Bowman speak, Friday

Some of the main moves in markets:

Stocks

  • The S&P 500 rose 0.4% as of 9:30 a.m. New York time

  • The Nasdaq 100 rose 0.4%

  • The Dow Jones Industrial Average rose 0.3%

  • The Stoxx Europe 600 fell 0.4%

  • The MSCI World Index was little changed

  • Bloomberg Magnificent 7 Total Return Index rose 0.8%

  • The Russell 2000 Index was little changed

Currencies

  • The Bloomberg Dollar Spot Index was little changed

  • The euro was little changed at $1.0978

  • The British pound rose 0.2% to $1.3107

  • The Japanese yen rose 0.1% to 148.03 per dollar

Cryptocurrencies

  • Bitcoin fell 0.8% to $62,533.58

  • Ether fell 0.5% to $2,428.23

Bonds

  • The yield on 10-year Treasuries advanced two basis points to 4.05%

  • Germany’s 10-year yield was little changed at 2.26%

  • Britain’s 10-year yield was little changed at 4.22%

Commodities

  • West Texas Intermediate crude fell 2.9% to $74.91 a barrel

  • Spot gold fell 0.2% to $2,636.98 an ounce

This story was produced with the assistance of Bloomberg Automation.

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