Stock market today: S&P 500 climbs as health care, tech gain; Nvidia earnings loom
* U.S. stocks, global stock index up more than 1%
* U.S. 10-yr bond yields climb back from lowest since Sept
2017
(Updates with European stocks close and gold prices)
By Caroline Valetkevitch
NEW YORK, June 4 (Reuters) - Global stock indexes rallied on
Tuesday as U.S. tech shares bounced back from the previous day's
selloff and investors weighed the possibility of a U.S. interest
rate cut, while yields on U.S. Treasuries rose.
Longer-dated Treasury yields climbed back from their lowest
since September 2017.
Federal Reserve Chairman Jerome Powell said the U.S. central
bank will respond "as appropriate" to the risks posed by a
global trade war and other recent developments.
His remarks followed St. Louis Fed President James Bullard's
comments late on Monday that a rate cut "may be warranted soon."
Strategists said the comments suggested the Fed is
considering its options.
Equity "investors are taking comfort in what appears to be a
Fed that is contemplating cutting rates if the economy
materially slows down," said Michael Geraghty, equity strategist
at Cornerstone Capital Group in New York.
In a brief statement included as part of a speech on broader
monetary policy issues, Powell said the Fed was "closely
monitoring the implications" of ongoing trade disputes.
The United States' trade war with China and other countries
has been escalating in recent weeks, increasing market
uncertainty and worries about the global economy for investors.
U.S. technology stocks bounced back from Tuesday's sharp
selloff, driven by worries about a clamp-down on the world's
internet and social media giants. The Nasdaq also confirmed a
correction at the day's close, falling more than 10% from its
May 3 record high.
The Dow Jones Industrial Average .DJI rose 424.07 points,
or 1.71%, to 25,243.85, the S&P 500 .SPX gained 46.15 points,
or 1.68%, to 2,790.6 and the Nasdaq Composite .IXIC added
151.06 points, or 2.06%, to 7,484.08.
The pan-European STOXX 600 index .STOXX rose 0.59% and
MSCI's gauge of stocks across the globe .MIWD00000PUS gained
1.13%.
In U.S. Treasuries, benchmark 10-year Treasury yields
US10YT=RR rose 5.70 basis points to 2.138% after hitting
2.061% on Monday, their lowest since September 2017.
Jitters over the global economy have pushed investors into
top-rated government bonds and other safety plays in recent
weeks.
The dollar was near steady after Powell's comments.
The dollar index .DXY rose 0.07%, with the euro EUR= up
0.08% to $1.1249.
The Japanese yen JPY= weakened 0.11% versus the greenback
at 108.20 per dollar.
The rally in stocks helped oil prices, and gold prices eased
off of a three-month peak.
U.S. crude CLcv1 rose 0.28% to $53.40 per barrel. Brent
crude LCOcv1 rose 0.7 percent to $61.71. Spot gold XAU=
dropped 0.1% to $1,323.31 an ounce.
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Record low RBA cash rate https://tmsnrt.rs/2QFJt4n
Yields, oil and stocks all locked in slide https://tmsnrt.rs/2QJ5GOZ
Asian stock markets https://tmsnrt.rs/2zpUAr4
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