U.S. stocks were looking to extend recent gains after the S&P 500 erasing its year-to-date losses.
The S&P 500 opened 0.24% up, while Dow Jones Industrial Average opened 0.2% higher. Nasdaq on the other hand, edged higher with 0.38% at open.
U.S. consumer price index data, coupled with positive vibes around the U.S.-China deal, had seen stocks climb on Tuesday, May 13. As the gains across equities cascaded into other risk assets, the benchmark index S&P 500 saw its year-to-date losses evaporate.
The Dow Jones Industrial Average, which had slipped on Tuesday, also edged up. Investor bullishness also had the Nasdaq index gaining, with tech stocks enjoying an uptick in sentiment. Nvidia’s major gains drove the tech heavy index up.
The upbeat open is Wall Street signaling continued optimism as tariffs and inflation concerns fade.
Gold prices fell amid the broader market rally, while the U.S. dollar extended its decline for a second consecutive day. The cooling of trade war tensions and easing inflation fears contributed to the dollar’s weakness.
Meanwhile,U.S. Treasury yields also edged lower. The 10-year Treasury yield dropped by 1 basis point to 4.489%, while the 2-year yield declined to 4.013%.
According to Kelsey Berro, fixed income portfolio manager at JPMorgan Asset Management, the market has repriced the yield curve’s front end.
“One of the reasons why yields should be more range-bound here, is that while Fed rate cuts have been pushed out, we’re still a long way away from thinking about Fed rate hikes,” Kelsey Berro of JPMorgan Asset Management, told CNBC.
In addition to the CPI report and U.S.-China trade truce, investors will continue to monitor developments from the ongoing earnings season for further clues about market direction.
