Wall Street pointed slightly higher early today as falling bond yields continued to take pressure off stocks, according to the Associated Press. Futures for the S&P 500 and the Dow Jones Industrial Average each rose about 0.3%.
Investors have taken heart from signs that upward pressure on inflation in many economies may be easing. That would enable the Federal Reserve and other central banks to halt or reverse aggressive interest rate hikes meant to curb rising prices.
The yield on the 10-year Treasury has fallen to 4.56% from 4.80% late Friday, a considerable move for the bond market. The two-year Treasury yield, which moves more closely with expectations for the Fed’s actions, sank to 4.96%. It was 5.09% on Friday.
High rates and longer-term yields knock down prices for stocks and other investments, while slowing the economy in hopes of undercutting high inflation. It did not stop a megadeal in the oil patch, however.
Exxon Mobil said today that it will buy Pioneer Natural Resources in an all-stock deal valued at $59.5 billion. It’s Exxon’s largest buyout since acquiring Mobil two decades ago and creates a colossal fracking operator in West Texas.
In other trading, a barrel of U.S. crude gave up 33 cents to $85.64 per barrel in electronic trading on the New York Mercantile Exchange. Brent crude, the international standard, shed 24 cents to $87.41 per barrel.
The U.S. dollar fell to 148.70 Japanese yen from 148.72 yen.
