- Stocks in the United States rose in a broad-based rally, with gains in cyclicals and small-caps signalling improved investor confidence in the economy's growth prospects amid monetary tightening.
- The S&P 500 finished near session highs, regaining ground lost in Monday's late-day slide, thanks to gains in the financials and materials sectors. Dip-buying in major technology companies such as Apple and Microsoft aided the Nasdaq 100's rise. Meanwhile, the Russell 2000 small-cap index outperformed, rising more than 1.5%, indicating optimism about economic resumption as the pandemic fades.
- The 10-year Treasury yield has risen to 1.96%, a level last seen in 2019, with some investors predicting it will reach 3 percent this year as the Federal Reserve battles high inflation. The US currency gained ground against a basket of peers.
- Investors are looking forward to Thursday's data, which is expected to show persistently high US inflation. This could add to market volatility as markets prepare for a Fed hike cycle and eventual balance-sheet reduction. However, a rise in yields could support some equities, such as banks and value stocks, according to Goldman Sachs Group, in the face of generally strong earnings. 76% of the 299 companies in the S&P 500 that have reported results have beaten earnings estimates, with profits coming in more than 6% higher than expected.
- Oil prices fell sharply as traders weighed the ongoing tensions in Eastern Europe and the resumption of nuclear talks with Iran. Bitcoin fell below $44,000 for the first time in six days.
