US stocks have risen, with each of the major indexes closing at a record high, as expectations grew the Federal Reserve would take a more dovish turn as a raft of data provided more evidence of a slowing economy. Benchmark US 10-year Treasury Note yields touched its lowest since November 2016 at 1.939 per cent, while eurozone yields tumbled to record lows on bets the European Central Bank’s next chief would stay a dovish course.
Data on Wednesday showed the US trade deficit jumped to a five-month high while services sector data showed a slowdown in activity. The reports come on the heels of data on housing, manufacturing, business investment and consumer spending that point to slowing economic growth in the quarter.
The Dow Jones Industrial Average on Wednesday rose 179.32 points, or 0.67 per cent, to 26,966; the S&P 500 gained 22.79 points, or 0.77 per cent, to 2,995.8; and the Nasdaq Composite added 61.14 points, or 0.75 per cent, to 8,170.23. The defensive utilities, real estate and consumer staples rose the most among the 11 major S&P sectors as the falling bond yields made stocks that pay high dividends more attractive. The dividend yield for the broad S&P 500 and the 10-year Treasury are nearly identical.Morning-Market-Note-Thursday-4th-July