U.S. stocks rose on Monday, extending the bullish momentum into the second half of the year.
The 10-year Treasury yield climbed 13 basis points to 4.479%.
Investors are closely watching Friday’s jobs report to gauge how interest rates will move.
U.S. stocks ended higher on Monday to start the second half of the year, rising even as bond yields soared during the session.
Stocks ended the first half of 2024 with solid gains, with the S&P 500 up 14% and the Nasdaq Composite up 18%. Strength in technology stocks and investor confidence that the Federal Reserve will cut interest rates this year should keep the momentum going. However, fears have grown around market concentration, as only a handful of stocks have helped propel the market to record highs.
Meanwhile, the shifting outlook for the U.S. election added uncertainty to the bond market, with 10-year Treasury yields surging Monday. After the debate between candidates Joe Biden and Donald Trump on Thursday, the odds of a Trump victory rose by about 6 percentage points, Goldman Sachs reported. Traders were also pricing in volatility from the European elections, with right-wing candidates in France coming out on top in the first round of the general election.
The 10-year Treasury yield rose 12 basis points to 4.469%.
Federal Reserve officials Jerome Powell and John Williams are scheduled to speak this week, setting the tone ahead of this month’s policy meeting. Investors’ attention, however, will be primarily focused on the June jobs report, due out Friday. Economists expect jobs to be added by 190,000 last month, a slowdown from May.
Any surprises in last month’s jobs forecast could weigh on the Fed’s future monetary policy. Currently, markets expect rate cuts to begin in November, CME FedWatch Tool the data shows.
Among the individual players moving stocks Monday, Chewy suffered whiplash after meme trading legend Keith Gill revealed a $245 million stake in the company.
Here’s where the U.S. indices stood shortly after the 4 p.m. close on Monday:
Here’s what else is happening today:
In commodities, bonds and cryptocurrencies:
West Texas Intermediate Crude oil rose 2.3% to $86.85 a barrel. Brent crude oilthe international benchmark, climbed 2.2% to $83.44 a barrel.
Gold edged up 0.19% to $2,330 an ounce.
The 10-year Treasury yield climbed 12 basis points to 4.469%.
Bitcoin gained 1.11% to $63,382.
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