NEW YORK: US stocks gained on Tuesday, with financials snapping a five-day losing streak as Treasury yields stabilized above 15-month lows.
The S&P 500 financial index gained 1.1 percent and registered its biggest daily percentage gain since Feb. 15.
Benchmark 10-year note yields were steady on the day but above the level reached Monday, which was the lowest since December 2017.
The S&P 500’s gains came after two sessions of declines, triggered by concern about slowing global economic growth and the inversion of a closely watched part of the Treasury yield curve.
“There was a stabilization in the bond market. What you don’t want to see is the continuing inversion. The market is on yield watch, there’s no doubt about it,” said Quincy Krosby, chief market strategist at Prudential Financial in Newark, New Jersey.
If it persists, the yield curve inversion is seen as an indicator that a recession is likely in one to two years.
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