In light trading, technology stocks led US equities higher, while Treasuries fell as traders weighed the prospect of a soft landing for the economy against interest rates remaining higher for longer.
US stocks advanced in a choppy session, with S&P 500 company trading 17% lower than the 30-day average at this time of day. Nvidia and other tech behemoths drove Monday's rally, which came on the heels of the sector's two-week losing streak. Smaller companies were under pressure, with the Russell 2000 falling to its lowest level in over a month as risk appetite waned.
Treasury yields wiggled before rising as high-quality corporate bond sales weighed on prices. The policy-sensitive two-year yield rose to 4.96% on the fourth day, while the 10-year yield was at 4.19%.
Traders are betting that interest rates will continue to outpace inflation for years to come, while investors sitting on record first-half gains must contend with central bankers warning that they are not in a rush to cut rates.