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Stocks up a little with bond yields up; economy, rates in focus

An international equity index was increasing on Monday with help from Wall Street heavyweights and U.S. Treasury yields climbed as data showed a. degeneration in U.S. consumer self-confidence and investors prepared. themselves for less rate cuts in 2025.

In U.S. equities, Nasdaq and the S&P 500 were. increased primarily by rallies in megacap stocks such as Nvidia Corp. and Broadcom Inc.

. Previously, the Conference Board said its U.S. customer. confidence index deteriorated in December to 104.7 versus economic expert. expectations for a boost to 113.3 and November's upwardly. revised 112.8 on issues about future business conditions.

While brand-new orders for crucial U.S.-manufactured capital goods. increased in November amidst strong demand for equipment, orders of. durable items - ranging from toasters to airplane - dropped 1.1%. after increasing 0.8% in October, with declines primarily. reflecting weak point in commercial aircraft orders.

Mentioning weak consumer confidence as an essential unfavorable for. equities on Monday, Robert Phipps, a director at Per Stirling. Capital Management in Austin, Texas, highlighted the 10-year. Treasury yield's jump to its highest level because late May.

It is necessary for equity financiers that the 4.6% level. holds for 10-year Treasury yields and if we break above it. there's a threat the marketplace will go ahead and test 5%, he stated,. indicating slowing Federal Reserve rate cuts as the reason.

The marketplace is adapting to a less dovish Fed policy, said. Phipps, keeping in mind that U.S. indexes looked weaker under the hood on. Monday. It is a stealthily strong market due to the fact that if you took. out about 10 megacap stocks that are acquiring, the market would. be sharply lower.

At 02:52 p.m. the Dow Jones Industrial Average fell. 46.08 points, or 0.11%, to 42,794.18, the S&P 500 rose. 25.44 points, or 0.43%, to 5,956.29 and the Nasdaq Composite. rose 147.08 points, or 0.75%, to 19,719.67

MSCI's gauge of stocks around the world rose. 3.87 points, or 0.46%, to 848.10 while earlier, Europe's STOXX. 600 index closed up 0.14%.

Ahead of Tuesday's shorter trading day and Wednesday's. market close for Christmas, Tim Ghriskey, senior portfolio. strategist at Ingalls & & Snyder stated investors still had last. Wednesday's high sell-off on their minds after the Fed plainly. signalled for less rate cuts next year.

There's issue about the economy. There's issue about. the Fed making an incorrect relocation and there's the excellent unknown of. what Trump is actually going to do, stated Ghriskey, referring to. U.S. President-elect Donald Trump's Jan. 20 inauguration.

In U.S. Treasuries, yields rose before Monday's sale of. two-year Treasury notes however altered little bit right after the. auction.

The yield on benchmark U.S. 10-year notes rose. 7.3 basis points to 4.597%, from 4.524% late on Friday while the. 30-year bond yield rose 6.7 basis indicate 4.7832%.

The 2-year note yield, which typically moves in. action with rate of interest expectations for the Federal Reserve,. rose 3.5 basis points to 4.347%, from 4.312% late on Friday.

In currencies, the dollar advanced after a drop in the prior. session while the euro fell as recent worldwide reserve bank. meetings set expectations for diverging rate cut courses in 2025.

The dollar index, determining the U.S. currency against. a basket of major currencies, rose 0.25% to 108.06.

The euro was down 0.2% at $1.0408 while versus the. Japanese yen, the dollar strengthened 0.44% to 157.1.

Sterling damaged 0.31% to $1.253 and the Mexican. peso < damaged 0.66% versus the dollar at 20.221.

Oil prices edged down in thin trade ahead of the Christmas. holiday on concerns about a supply surplus next year and a. reinforced dollar.

U.S. unrefined settled 0.32%, or 22 cents at $69.24. a barrel and Brent fell to $72.63 per barrel, down. 0.43%, or 31 cents on the day.

Gold rates edged lower in subdued holiday-season trading,. weighed down by a robust dollar and high U.S. Treasury yields.

Area gold fell 0.42% to $2,609.73 an ounce. U.S. gold. futures fell 0.67% to $2,611.10 an ounce.

(source: Reuters)