Major U.S. stock indices experienced a third consecutive day of gains on Tuesday, led by the NASDAQ and S&P 500, both of which rose over 0.5% within their day's trading range. The Dow Jones Industrial Average reached a session high before settling up 134.65 points at 33739.29, while the S&P 500 and NASDAQ Composite touched highs of 49.81 and 175.39 points respectively before closing at 4358.23 and 13562.83.
These gains were primarily driven by falling yields across different maturities. Notably, the 10-year yield dropped to 4.652%, accompanied by declines in both the 30-year and 2-year yields. This downward trend in yields boosted investor sentiment, leading to the surge in stock indices.
Despite this positive market movement, the U.S Treasury's auction of $46 billion in 3-year notes on Tuesday saw weak demand from both direct and indirect bidders. This was evidenced by a below-average bid-to-cover ratio and a 1.7 basis point positive tail above the When Issued (WI) level.
In currency markets, the U.S dollar (USD) closed lower against most major currencies, with the exception of the Japanese Yen (JPY). The British Pound (GBP) emerged as the strongest performer against the USD on Tuesday.
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