U.S. stock indexes experienced gains today, with the S&P 500 Index up 0.63%, the Dow Jones Industrials Index rising 0.52%, and the Nasdaq 100 Index increasing by 1.08%. Notable contributors included Oracle, which surged over 7% following TikTok CEO Chew’s announcement of a joint venture with American investors, including Oracle, while chipmakers like Micron Technology also posted strong performances.
The 10-year U.S. Treasury note yield increased by 3 basis points to 4.15%, impacted by a surge in global bond yields, particularly the 10-year Japanese government bond which reached a 26-year high of 2.025%. Despite the positive stock market momentum, higher yields have limited gains. Additionally, a record $7.1 trillion in notional open interest is set to roll off the U.S. options market today due to the quarterly “triple witching” expirations.
This week’s economic focus includes expected increases in November existing home sales, projected to rise by 1.2% month-over-month to 4.15 million, and a slight upward revision in the December consumer sentiment index. Meanwhile, the market anticipates a 20% chance of a 25 basis point cut to the fed funds target range at the next Federal Open Market Committee meeting on January 27-28.
