: Dow, S&P 500 posts first gain in four sessions despite Treasury yield surge

The Dow, S&P 500 and Nasdaq each posted their first gain in four session on Monday, even as Treasury yields continued to surge in the days since the Federal Reserve signaling rates could stay high through next year. The Dow Jones Industrial Average DJIA gained about 43 points, or 0.1%, ending near 34,006, while the S&P 500 index SPX and Nasdaq Composite Index COMP gained 0.4% and 0.5%, respectively, according to preliminary FactSet data. The bounce in equities came despite a continued march higher for benchmark borrowing rates that underpin the economy, with the 10-year Treasury yield BX:TMUBMUSD10Y jumping 10 basis points on Monday to 4.541%, the highest yield since October 2007, according to Dow Jones Market Data. Higher bond yields mean it costs more to borrow, which can hurt growth stocks and rate-sensitive parts of the economy, including the housing market and discourage consumer spending. Chicago Federal Reserve President Austan Goolsbee on Monday said interest rates will remain high “well into next year.”

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