Stocks Rally on Trade Optimism; Curve Flattens
- Three- and five-year U.S. Treasury note yield curve inverts
- Oil climbs following Saudi-Russian accord, Alberta supply cut
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Stocks rallied after the U.S. and China declared a truce in their trade war, while the dollar weakened and oil gained. A portion of the U.S. yield curve inverted for the first time in more than a decade.
The benchmark S&P 500 Index jumped more than 1 percent, building on gains posted during the biggest weekly increase in almost seven years, after leaders of the two countries agreed to hold off on new tariffs and intensify trade talks. European and Asian shares closed higher. The difference between three- and five-year Treasury yields dropped below zero, in what could be the first signal that the market is putting the Federal Reserve on notice that the end of its tightening cycle is approaching.