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U.S. stocks are rising as Treasury yields ease back

Published 03/03/2023, 11:18 PM
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By Liz Moyer

Investing.com -- U.S. stocks were rising on Friday as Treasury yields fell back from key levels.

At 9:55 ET (14:55 GMT), the Dow Jones Industrial Average was up 140 points or 0.4%, while the S&P 500 was up 0.8% and the NASDAQ Composite was up 1.1%.

The 10-year Treasury was back below 4% after reading a four-month high a day earlier, rallying because investors are worried about the Federal Reserve holding rates higher for longer. The 2-year Treasury was at 4.855% after reaching highs not seen since 2007.

Economic data continues to show a tight labor market and higher costs for businesses, stoking concerns the Fed would have to continue raising interest rates. Fed Gov. Chris Waller and Atlanta Fed President Raphael Bostic said Thursday they were open to raising rates by more than they previously thought would be necessary.

The market is now betting the benchmark rate will reach closer to 5.5% and stay higher for longer.

The hawkish comments from Fed officials have also led market watchers to factor in at least three more rate hikes of a quarter of a percentage point each, starting this month.

Marvell Technology, Inc. (NASDAQ:MRVL) shares were down 7.7% after the semiconductor maker provided first quarter profit and revenue forecasts that fell short of analysts' estimates.

Costco Wholesale Corp. (NASDAQ:COST) shares fell 3.2% after the big box retailer posted disappointing second quarter revenue. Inflation is forcing consumers to cut back on their discretionary spending.

Oil was falling. Crude Oil WTI Futures was down 0.7% to $77.61 a barrel, while Brent Oil Futures was down 0.8% to $83.98 a barrel. Gold Futures was up 0.4% to $1848.

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