Nasdaq Gains 1.1% as US Yields Hold Above 5% | Global Economy, Oct 20
The Nasdaq rose 1.1% as the US 10-year yield held above 5%. China's growth beat forecasts and Brazil's inflation index topped estimates. The post Nasdaq Gains 1.1% as US Yields Hold Above 5% | Global Economy, Oct 20 appeared first on The Rio Times .
The S&P 500 closed at 7,691, up 0.41%, while the Nasdaq surged 1.11% to 26,431, driven by tech stocks. The Dow slipped 0.07% to 51,966. Investors overlooked a 10-year yield at 5.139%, indicating strong growth bets. The dollar index climbed to 101.946, and the VIX fell to 18.44. Latin America's carry trades could be benefited by the strong dollar, high US yields, and declining volatility.
However, this could change for the worse tomorrow. The Federal Reserve is in its blackout period before the 27–28 October meeting. With the 10-year at 5.139%, the Treasury market is tightening the Fed's hands. Pending home sales will reveal how quickly the housing market is cooling. Brazil's Selic remains at 13.75%, offering carry, but the 5.14% US Treasury yield raises the bar for real returns.
China's Q3 GDP grew 4.5% year-on-year (forecast 4.4%) and 1.2% quarter-on-quarter (forecast 1.1%). This supports metals and grains for Latin American exporters. The FGV's IGP-10 inflation index in Brazil rose 1.8% in October, higher than the 1.4% forecast. Investors are chasing growth and tech stocks despite the high 10-year yield.
Officials are not providing any guidance before the meeting, leaving the markets to rely on data, auctions, and yields to set expectations.
Written by urgent.news from The Rio Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
