# Stocks hit record; U.S. Treasury yields hover above 5-month lows
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-12
Category: INVESTING
Category URL: https://financedigest.com/category/investing
Meta Title: Global stocks close at record high amid COVID-19 variant
Meta Description: Investors monitor market as Delta variant threatens economic growth. Bond yields near lows, earnings season begins.
URL: https://financedigest.com/stocks-hit-record-u-s-treasury-yields-hover-above-5-month-lowshtml

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By Chuck Mikolajczak

NEW YORK (Reuters) – A gauge of global stocks closed at a record on Monday and U.S. [Treasury yields](https://www.financedigest.com/wall-street-drops-treasury-yields-gyrate-on-fed-chairman-powells-remarks.html "Wall Street drops, Treasury yields gyrate on Fed Chairman Powell’s remarks") held above five-month lows touched last week as investors looked for signs on whether the Delta variant of the COVID-19 coronavirus could hamper economic growth.

Last week, a [bond market rally pushed the yield](https://www.financedigest.com/stocks-up-bond-yields-fall-as-markets-mull-a-fed-policy-pause.html "Stocks up, bond yields fall as markets mull a Fed policy pause") of the benchmark 10-year U.S. Treasury [note to a five-month low](https://www.financedigest.com/dollar-falls-to-nine-month-low-as-powell-notes-progress-in-disinflation.html "Dollar falls to nine-month low as Powell notes progress in disinflation") of 1.25% as investors worried that climbing cases of the variant could slow the economic recovery. The yield had risen to as high as 1.78% in March as rising vaccination [rates fed](https://www.financedigest.com/fed-rates-up-boe-up-ecb-up-stocks-up.html "Fed rates up, BoE up, ECB up, stocks up") expectations for growth.

The World Health Organization warned the Delta variant was becoming dominant and many countries had yet to receive [enough doses of vaccine to secure their health workers](https://www.financedigest.com/80-of-workers-not-saving-enough-for-retirement.html "80% of workers not saving enough for retirement").

Analysts also cited a lack of supply for the [drop in yields](https://www.financedigest.com/wall-st-stocks-fall-bond-yields-rise-as-china-drops-quarantine-rule.html "Wall St stocks fall, bond yields rise as China drops quarantine rule"). [Yields were little changed after Treasury](https://www.financedigest.com/wall-st-flutters-treasury-yields-ease-as-powell-resumes-testimony.html "Wall St flutters, Treasury yields ease as Powell resumes testimony") sold $58 billion in three-year notes and $38 billion in 10-year notes, with a sale of $24 billion in 30-year bonds set for Tuesday.

Earnings season begins this week, and the market will take in U.S. [inflation data](https://www.financedigest.com/stocks-mixed-dollar-gains-after-robust-inflation-jobs-data.html "Stocks mixed, dollar gains after robust inflation, jobs data") on consumer and producer prices as well as comments from Federal Reserve Chair Jerome Powell.

Earnings season is going to be warmly greeted as an opportunity for existing biases to be confirmed,” said Mike Zigmont, head of [trading and research at Harvest Volatility Management](https://www.financedigest.com/increasing-regulatory-red-tape-promptsa-new-approachto-trading-data-management-among-fs-firms.html "Increasing regulatory red tape prompts a new approach to trading data management among FS firms") in New York.

“Even if forecasts are not as rosy as what the most bullish had hoped, it’s all going to get rationalized away.”

Benchmark 10-year notes last yielded 1.3712%, from 1.356% late on Friday.

Equity gains on Wall Street were modest, with financials the best-performing S&P sector of the session ahead of results from JPMorgan Chase, Goldman Sachs and Bank of America on Tuesday, but the gains were enough to [push each of the three major averages to record](https://www.financedigest.com/energy-bill-support-pushes-uk-budget-deficit-to-february-record.html "Energy bill support pushes UK budget deficit to February record") closing levels.

The Dow Jones Industrial Average rose 126.02 points, or 0.36%, to 34,996.18, the S&P 500 gained 15.08 points, or 0.35%, to 4,384.63 and the Nasdaq Composite added 31.32 points, or 0.21%, to 14,733.24.

[European equities also advanced to close at a record](https://www.financedigest.com/european-stocks-extend-record-rally-on-lift-from-insurers-ma-activity.html "European stocks extend record rally on lift from insurers, M&A activity") level of 460.83. The pan-European STOXX 600 index rose 0.69% and MSCI’s gauge of [stocks across the globe gained](https://www.financedigest.com/stocks-dollar-gain-on-resilient-u-s-economy.html "Stocks, dollar gain on resilient U.S. economy") 0.50%, closing at a record 727.24.

Investors will watch [Powell’s testimony this week after the People’s Bank of China late on Friday moved to free up $154 billion for banks to buttress the economic recovery while the European](https://www.financedigest.com/european-shares-hit-nine-month-high-dollar-wobbles-after-powell-remarks.html "European shares hit nine month high, dollar wobbles after Powell remarks") Central Bank said it will discuss a change to its forward guidance on policy direction at next week’s meeting.

[Crude prices fell on concerns about dampening economic](https://www.financedigest.com/oil-near-flat-as-us-crude-stock-draw-contends-with-economic-concerns.html "Oil near flat as US crude stock draw contends with economic concerns") growth.

U.S. crude settled down 0.62% at $74.10 per barrel and Brent was settled at $75.16, down 0.52% on the day.

The safe-haven [dollar moved slightly higher](https://www.financedigest.com/powells-warning-on-higher-u-s-rates-pushes-dollar-to-3-mth-high.html "Powell’s warning on higher U.S. rates pushes dollar to 3-mth high") on the concerns about the pandemic and its potential to thwart growth.

The dollar index rose 0.092%, with the euro down 0.1% to $1.1861.


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