Technology sector leads S&P 500 gains with its biggest outperformance since 2001

arabictrader.com

The Dow Jones index has risen 2.1% since the start of the month, putting it on track for a fifth consecutive monthly gain. Both the S&P 500 and the composite Nasdaq index are also moving toward their first monthly gains since May, with increases of roughly 3% and 4% respectively. Both the S&P 500 and the Dow Jones recorded all‑time highs earlier in August.

In a research note, Jonathan Miller, chief economist at Barclays, wrote: "Although we doubt his remarks were intended to pave the way for a tighter monetary policy in September, given his reluctance to provide forward guidance, his tone was hawkish (leaning toward a rate hike), making a 25‑basis‑point rate increase in September the most likely scenario. Based on the inflation indicators he monitors, our baseline forecasts point to a final rate hike in December."

Bisent told Sarah Eisen of CNBC in an interview on the sidelines of the G20 meeting: "The 10‑year Treasury yield has remained stable since President Trump took office." He pointed to Fitch Ratings' confirmation of its "AA+" rating on U.S. sovereign debt, adding: "If there were a problem in the U.S. bond market, Sarah, people would be selling U.S. bonds and buying other countries' bonds. But we enjoy the best‑performing market."

Warsh said, referring to the presentation he delivered on Friday at the Federal Reserve's annual symposium in Wyoming: "While I am here today, 100 days into my tenure, I recall a comment I made at Jackson Hole a day or two ago, that the term 'secular recession' seems like a description of an era that has passed; the new phase is characterized by 'secular growth'."

U.S. oil prices rose more than 3% after the United States and Iran exchanged blows in the Middle East for the first time since July. Energy companies posted gains in pre‑market trading on Monday: Halliburton jumped over 2.5%, Chevron rose 2%, Valero Energy and Occidental Petroleum each climbed about 2%, and Exxon Mobil advanced more than 1.5%.

In this context, the two‑year Japanese government bond yield touched its highest level in 31 years on Monday, while the two‑year German Bund yield traded at its highest since July 2024. The two‑year French government bond yield also rose to its highest since April 2024.