US stocks close mixed, yields rise to start second quarter trading

The second quarter of 2024 began with mixed closing results for US stocks, with the Dow Jones Industrial Average down 0.6% and the S&P 500 down 0.2%. Although it was off its early session highs, the tech-heavy Nasdaq Composite ended the day marginally higher.

As the benchmark 10-year Treasury yield increased 12 basis points to 4.32%, nearing its highest point of the year, US bonds fell down. The US manufacturing sector is at its strongest point since 2022, according to data released on Monday. This raises concerns about whether the economy is expanding and how it may affect the Fed’s decision-making process on interest rates.

For the first time since September 2022, the manufacturing sector entered an expansionary phase, according to the manufacturing PMI published by the Institute for Supply Management. According to a metric provided by S&P Global, output reached a 22-month high in the previous month as the US economy keeps showing promise. The ISM’s manufacturing PMI increased to 50.3 in March from 47.8 in February, which was higher than the 48.3 economists had predicted.

With the benchmark S&P 500 breaking 22 new closing records so far in 2024, the market has started the year strongly for stocks, which have had their best first quarter since 2019. As of right present, all three major averages are up for five months in a row. The jobs report on Friday will provide the Fed yet another crucial cue.