Stocks rose sharply on Tuesday, lifting the S&P 500 index to its third-best start to an October since 1930, according to FactSet.
The two-day rally is hitting markets as investors look for signs that central banks might ease up on their aggressive rate hikes aimed at taming the hottest inflation in four decades. Despite the broad gains, the major indexes remain in a bear market after falling 20% or more from their most recent record highs.
He added that recent data including the decline in job openings are"pointing to the type of downward labor inflection point the Fed has been yearning to see."Still, the optimism could be misguided as inflation remains stubbornly hot, said John Lynch, chief investment officer for Comerica Wealth Management.
Treasury yields continued to pull back from their multiyear highs, which has helped relieve some of the pressure on stocks. The yield on the 10-year Treasury, which helps set rates for mortgages and many other kinds of loans, fell to 3.61% from 3.65% late Monday. It got as high as 4% last week after starting the year at just 1.51%.