Stocks closed higher Tuesday, breaking a four-day losing streak as market participants shook off a surprise hawkish move from the Bank of Japan that caused global bond yields to rise. The Dow Jones Industrial Average rose nearly 100 points higher, while the S&P 500 and Nasdaq Composite nudged 0.1% and 0.01% higher.
Here's how the market settled on Tuesday:
S&P 500 Index
Dow Jones Industrial Average
Nasdaq Composite Index
Overnight, the Bank of Japan moved to widen its cap on its 10-year government bond yield, adding to pressure from other hawkish moves from global central banks in recent weeks; market participants fear these moves will push the global economy into a recession.
Stocks later rose Tuesday on some optimism that this may be some of the last aggressive moves seen from global central banks, with many expected to ease rate hikes next year. December is historically a bullish move for the stock market, with many traders attempting to ignite a year-end rally (sometimes referred to as a Santa Claus rally).
Still, even with Tuesday's gains, stocks are on track to end both the week and the month with losses. The Dow is currently down over 5% for the month, with the S&P 500 and Nasdaq have fallen 6% and 8%, respectively, so far for December.
On the economic front, new U.S. home construction fell for a third-straight month in November and permits declines as rising mortgage rates and inflationary pressures weighed on housing affordability and cut into demand.
Residential housing starts fell 0.5% last month to a 1.43 million annualized rate, according to government data released Tuesday. Single-family starts also declined to an annualized rate of 828,000, the lowest since May 2020. Moreover, permit for single-family homes fell 7.1% to its weakest pace since 2020.
Wall Street is gearing up for another batch of quarter earnings reports, as well as more housing market data heading into the last half of the week. Earnings for Nike
