Stocks are treading water after a rally fueled by artificial-intelligence hype propelled the market to its highest level since August. Treasury yields fell on expectations that the US Congress will pass a debt deal to avoid a default.
The S&P 500 finished little changed, remaining slightly above 4,200. As oil fell below $70 per barrel, energy companies weighed on the index. The Nasdaq 100 extended its year-to-date gain to 31%, with Nvidia hovering near $1 trillion in value following the announcement of several AI-related products. A gauge of large-cap stocks such as Apple and Tesla rose more than 1.5%.
Bond yields in the United States fell from their highest level since March as investors assessed the potential economic consequences of the holiday weekend agreement to temporarily suspend the federal debt ceiling, as well as an expected wave of month-end buying.
Treasury rates with maturities ranging from 3- to -10 years led the charge. The two-year yield, which is more sensitive to the outlook for Federal Reserve policy than longer maturities, was trading near 4.5%.