This post was originally published on this site
Investing.com — U.S. stock markets opened higher on Monday amid growing expectations that the slowdown visible in the U.S. and world economies will force the Federal Reserve to stop raising U.S. interest rates.
Those hopes have driven a sharp rally (juiced by short-covering) in government bonds over the last week, driving benchmark Treasury yields down all along the yield curve. By the open, the 10-year Treasury yield was at 3.68%, down another 12 basis points from Friday’s close and down 34 basis points from last week’s peak. The 2-year yield, more sensitive to expectations of Fed action, was flat from Friday at 4.12%, but still down nearly a quarter-point from its peak.
By 09:35 ET (13:35 GMT), the Dow Jones Industrial Average was up 290 points, or 1.0%, at 29,015 points. The S&P 500 was up 0.8% and the Nasdaq Composite was up 0.4%.
The Nasdaq was underperforming after some disappointing news from Tesla (NASDAQ:TSLA), which said its third-quarter deliveries were around 4% below consensus forecasts, despite rebounding to a new record of nearly 344,000. CEO Elon Musk lamented the problems of getting sufficient transportation capacity to meet the company’s usual surge in shipments at the end of the quarter. The shortfall makes it less likely that Tesla will meet its stated target of increasing production by 50% this year.
Tesla stock gapped down 7.4% to its lowest since mid-July.
Going in the other direction was ViaSat (NASDAQ:VSAT) stock, which soared 21% after agreeing to sell its Link 16 Tactical Data Links (TDL) business to L3Harris Technologies (NYSE:LHX) for $1.96 billion. The sale is expected to result in cash proceeds to Viasat of approximately $1.8 billion net after estimated taxes, fees, and other expenses. L3Harris stock rose 2.0%.
