US stocks surge to record highs, but traders eye yield jump

Reuters

US stocks surge to record highs, but traders eye yield jump

2024 11월 6, 오후 3:22 GMT

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Main U.S. indexes sharply higher; Dow out front, up ~3%

Financials lead S&P sector gainers; Real Estate weakest group

Euro STOXX 600 index was up ~2%, now down ~0.6%

Dollar jumps; bitcoin rallies >7%; crude slips; gold down ~3%

U.S. 10-Year Treasury yield surges to ~4.45%

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U.S. STOCKS SURGE TO RECORD HIGHS, BUT TRADERS EYE YIELD JUMP

The main U.S. indexes have scaled all-time highs early on Wednesday as Republican Donald Trump won the 2024 U.S. presidential election in a remarkable comeback four years after he was voted out of the White House.

Among indexes on track to post record closing highs on Wednesday are the Dow .DJI, S&P 500 .SPX, Nasdaq composite .IXIC, DJ Transports .DJT, S&P 400 mid-cap index .IDX, the S&P 600 small cap index .SPCY, the S&P 500 financial .SPSY, consumer discretionary .SPLRCD and industrial .SPLRCI sectors as well as the S&P 500 banks index .SPXBK.

Meanwhile, the U.S. 10-Year Treasury yield US10YT=RR, hit 4.479%, or its highest level since July 1. The yield has backed off just slightly, and now stands around 4.45%.

This as Donald Trump's election victory stoked bets on economic policy shifts that could boost deficits and inflation.

The yield, which is battling a resistance line from its October 2023 high, may be stretched to the upside as it is on pace to rise for an eighth-straight week. The yield last rose more than seven weeks in a row with a 12-week run of gains into its October 2023 high.

That said, traders are eying the yield closely as its jump could potentially become a drag on stocks given the extent of their early surge.

Here is a snapshot of where markets stood around 1010 EST:

(Terence Gabriel)

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FOR WEDNESDAY'S EARLIER LIVE MARKETS POSTS:

FROM RED TIDE TO GREEN TIDAL WAVE, U.S. STOCKS POISED TO JUMP ON TRUMP WIN - CLICK HERE

U.S. FISCAL RISKS MAY LURE BOND VIGILANTES - CLICK HERE

STOXX EYES BEST DAY IN A YEAR, VOLATILITY CRUSHED - CLICK HERE

EUROPE BEFORE THE BELL: FUTURES RISE, NOVO EARNINGS - CLICK HERE

'TRUMP TRADES' IN FULL SWING - CLICK HERE

Earlytrade11062024 https://tmsnrt.rs/3NUxy0K

(Terence Gabriel is a Reuters market analyst. The views expressed are his own)