Stocks soared Monday to begin the new month and quarter as Treasury yields eased from levels not seen in nearly a decade.
The Dow Jones Industrial Average added 840 points, or 2.9%. The S&P 500 surged 2.9% after plummeting Friday to its lowest level since November 2020, and the Nasdaq Composite climbed 2.5%.
The moves came as the yield on the 10-year U.S. Treasury note rolled over to trade at around 3.659%, after blasting above 4% at one point last week.
“It’s pretty simple at this point, 10-year Treasury yield goes up, and equities likely remain under pressure,” Raymond James’ Tavis McCourt said. “It comes down, and equities rally.”
Wall Street has endured a dramatic month, with the Dow and S&P 500 making their most considerable monthly losses since March 2020. The Dow on Friday also closed below 29,000 for the first time since November 2020.
The Dow lost 8.8% in September, while the S&P 500 and Nasdaq Composite shed 9.3% and 10.5%, respectively.
For the quarter, the Dow plunged 6.66% to notch a three-quarter losing streak for the first time since the third quarter of 2015. Both the S&P and Nasdaq Composite lost 5.28% and 4.11%, respectively, to finish their third consecutive negative quarter for the first time since 2009.
