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- US stocks jumped Thursday as bond yields plunged on bets that the Fed has finished hiking.
- The 10-year Treasury yield tumbled as much as 16 basis points, and the 30-year yield sank as well.
- On Wednesday, the Federal Reserve kept rates steady for a second straight meeting.
US stocks jumped Thursday as bond yields continued to retreat from earlier highs after the Federal Reserve kept rates steady.
The 10-year Treasury rate slumped as much as 16 basis points to 4.62%, while the 30-year yield saw a similar plunge. At different points in the last week, both maturities had traded at over 5%.
Easing yields were triggered by the Treasury Department's quarterly auction plan released on Wednesday, showing that long-duration bond issuance would slow.
Later in the day, the Federal Reserve kept interest rates at the current 5.25%-5.5% range for the second straight meeting, with Chairman Jerome Powell citing tight financial conditions.
Though he has left the door open for another increase, markets are not expecting any further interest hikes, the CME FedWatch Tool shows.
Investors are also watching for Apple's quarterly earnings report, which is due after Thursday's closing bell.
Here's where US indexes stood at the 9:30 a.m. opening bell on Thursday:
- S&P 500: 4,289.00, up 1.21%
- Dow Jones Industrial Average: 33,582.15, up 0.92% (307.57 points)
- Nasdaq Composite: 13,234.22, up 1.32%
Here's what else happened today:
- JPMorgan's Jamie Dimon suspects the Fed might not be done hiking interest rates.
- Cathie Wood's "new Nasdaq" fund has sharply underperformed its namesake.
- Expect coming layoffs as all signs point to a recession, Jeffrey Gundlach said.
In commodities, bonds, and crypto:
- West Texas Intermediate crude oil rose 0.81% to $81.55 a barrel. Brent crude, the international benchmark, climbed 0.62 to $85.51 a barrel.
- Gold stayed essentially flat at $1,989.17 per ounce.
- The 10-year Treasury dropped 14.7 basis points, trading at 4.644%.
- Bitcoin jumped 2.1% to $35,372.