The stock market extended its strong November rise ahead of Nvidia's earnings, with Wall Street breathing a sigh of relief after a $16 billion auction of 20-year Treasuries enticed bond investors.
Shortly after the auction results, benchmark 10-year yields reversed course and fell to around 4.4%. The S&P 500 closed at its highest level since August, while the tech-heavy Nasdaq 100 hit a 22-month high. Nvidia and Microsoft both reached new highs amid a revival of the artificial-intelligence bid.
Traders have also been fixated on Treasury sales, particularly after the US recently offered an unusually large premium to sell 30-year securities, and those auctions have been exerting a growing sway over stocks, highlighting how the path of interest rates has gripped markets of late. The 20-year bond auction drew yields of 4.78%, compared to the pre-sale level of 4.79%.
The Treasury reintroduced 20-year bonds in May 2020, after a more than three-decade hiatus. Prior to Monday's auction, it had never sold the securities during the Thanksgiving week, and they have traded at a discount to other long-term maturities, causing some concern ahead of the sale.