NewzNEW YORK (AP) — Some of the pressure that’s ballooned in the bond market is easing on Wednesday after a report said inflation across the United States wasn’t as bad last month as economists expected.The better-than-expected data helped shorter-term Treasury yields slow their pressure-cranking jumps, a day after the 10-year Treasury yield touched its highest level since 2002. stock indexes.The S&P 500 rose 0.5% and is close to finishing September with a small gain instead of a loss. The Dow Jones Industrial Average was down 10 points, or less than 0.1%, as of 10:30 a.m.
Eastern time, and the Nasdaq composite was 0.9% higher.Easier Treasury yields help the broad stock market because higher yields slow the overall economy by making borrowing money more expensive for everyone, while undercutting prices for all kinds of investments.Shorter-term yields eased as traders pared bets that the Federal Reserve will raise its main interest rate next month to get inflation further under control. They now see just a 35% chance of that, down from the coin flip's chance seen a day earlier, according to data from CME Group. That helped the yield on the two-year Treasury drop to 4.86% from 4.89% late Tuesday.The morning’s report said that U.S.
consumers had to pay prices that were 3.4% higher overall in August for the cost of living than a year earlier. That was not as bad as the 3.7% that economists expected, even if it remained worse than the Fed’s 2% target.The report followed others from earlier in the month about inflation during August, but this is the one that the Federal Reserve prefers to use.To be sure, worries about high inflation are just one of the reasons yields have jumped in the United States and around the world. Another big factor has been signals that the U.S.
economy continues to chug along despite its many challenges, and a report on Wednesday said its growth was even stronger during the spring than earlier estimated.A separate report, meanwhile, said growth in business activity in the Midwest was better than economists expected.Other factors sending yields higher are also continuing to churn, including worries about the big debt loads that Washington and other governments worldwide are supporting.The yield on the 10-year Treasury, which is the centerpiece of the bond market, saw its yield briefly drop as low as 5.20% befo… stock indexes stabilize.The S&P 500 rose 0.5% and is close to finishing September with a small gain instead of a loss. The Dow Jones Industrial Average was up 81 points, or 0.2%, as of 10:15 a.m.
Shorter-term yields, such as for the two-year Treasury, sank more as traders pared bets that the Federal Reserve will raise its main interest rate next month to get inflation further under control. While that’s still worse than the Fed’s 2% target, it was not as bad as the 3.7% that economists expected.The report followed others from earlier in the month about inflation during August, but this is the one that the Federal Reserve prefers to use.To be sure, worries about high inflation are just one of the reasons yields have jumped in the United States and around the world. stocks to stabilize.The S&P 500 rose 0.3% and is close to finishing September with a small gain instead of a loss.
The Dow Jones Industrial Average was up 78 points, or 0.2%, as of 9:35 a.m. Eastern time, and the Nasdaq composite was 0.4% higher.Easier Treasury yields help the broad stock market because higher yields slow the overall economy by making borrowing more expensive for everyone, while undercutting prices for all kinds of investments.The yield on the 10-year Treasury fell to 5.24% from 5.26% late Tuesday. Shorter-term yields, such as for the two-year Treasury, sank even more as traders pulled back on bets that the Federal Reserve will raise its main interest rate next month to get high inflation further under control.
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