- US stocks rallied Wednesday after the S&P 500 broke a seven-day streak of wins the previous day.
- Bond yields slid to their lowest level in five months as doubts emerged about the economic recovery.
- The US Federal Reserve’s minutes from its last meeting are due at 2 p.m ET.
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US stocks rallied back Wednesday after the S&P 500’s seven-day record-high winning streak ended the previous day amid services sector data that suggested activity peaked in June.
The Federal Reserve is set to release its minutes from its June FOMC meeting at 2 p.m. ET. Investors will be eagerly searching for clues on the central bank’s approach to inflation and its plan to taper asset purchases.
“Given the recent rate of change in yields, we suspect the market has largely priced in a less hawkish tone buried within the minutes,” Craig Johnson, Piper Sandler chief market technician said.
The yield on the US 10-year Treasury fell six basis points to 1.30%, the lowest point since late February.
Here’s where US indexes stood at the 9:30 a.m. ET open on Wednesday:
- S&P 500: 4,351.19, up 0.18%
- Dow Jones industrial average: 34,594.28, up 0.05% (16.91 points)
- Nasdaq composite: 14,726.00, up 0.44%
US stocks kicked off the second half of 2021 with a record-setting rally, with some strategists anticipating that re-opening momentum and accommodative fiscal and monetary policy will continue to drive the stock market.
“Fear over runaway inflation has receded along with interest rates, setting up a potential passing of the baton from value to growth,” said Piper Sandler’s Johnson. “While we do not expect stocks to continue posting record-highs on a daily basis, we do believe the fundamental and technical backdrop supports a buy the dip strategy for investors.”
Bitcoin traded just under $35,000.
Oil prices recovered after falling on Tuesday, despite rising sharply earlier in the day after a meeting between the OPEC+ group of oil-producing countries was abruptly called off.
Gold climbed 0.6% to $1,805 per ounce.