S&P 500 hits a record as oil and Treasury yields slip

On Tuesday, global stock markets exhibited a mixed performance, with US stock futures also rising. Investors were closely monitoring oil prices, Treasury yields, and economic indicators as they evaluated the outlook for stocks. Key stock indices from various countries, such as the FTSE 100, CAC 40, DAX, and Nikkei 225, all experienced gains ranging from 0.8% to 1.1%.

Meanwhile, South Korea's Kospi declined by 0.9%, while Hong Kong's Hang Seng saw a 1% increase. Australia's S&P/ASX 200 and Taiwan's Taiex also showed modest gains. In the US, the S&P 500 and Dow Jones both gained 0.7% and 0.2%, respectively, with the Nasdaq Composite surging 1.1% to set a new record high. Strong gains in major technology companies contributed to the market's upward momentum.

However, some technology firms, like SoftBank Group, fell due to concerns over artificial intelligence. South Korean chipmakers, Samsung Electronics and SK Hynix, saw declines of 1.5% and 3.7%, respectively, highlighting the uneven performance of technology stocks across Asian markets. Analysts noted that while falling oil prices provided some relief, investors remained cautious due to the potential impact of high oil prices and rising Treasury yields on companies' costs and borrowing expenses.

The 10-year US Treasury yield remained near multi-decade highs, with retail investors seeking higher returns amid inflation concerns and a $40 trillion national debt. Strong corporate earnings expectations helped buoy the stock market, despite these risks, as investors balanced concerns about oil prices, bond yields, inflation, and Middle East tensions.