Day Traders Diary
The major averages finished higher, but sentiment was kept in check with a key part of the U.S. yield curve inverting even further, exacerbating fears of an impending recession. The Dow Jones Industrial Average closed up 258 points or 1% at 26,036. The S&P 500 climbed 0.7% to 2,887 while the Nasdaq Composite advanced 0.4% to end the day at 7,856. Energy stocks, Chevron and Exxon Mobil contributed to the Dow's gains, rising 0.8% and 0.7%, respectively.
The S&P 500 energy sector jumped 1.4%, led by a 10.6% surge in Cimarex Energy, as U.S. crude prices surged more than 1%. Oil jumped after the Energy Information Administration said U.S. crude inventories plummeted by 10 million barrels last week. Crude gained settled at $55.78 per barrel. Consumer stocks such as Tiffany and Kohl's also rose 3% and 3.4%, respectively. Tiffany posted quarterly earnings that beat analyst expectations.
Trading volumes remained subdued ahead of the U.S. Labor Day holiday on Monday.
The closely watched spread between the 10-year Treasury yield and the 2-year rate briefly fell to negative 6 basis points Wednesday. The move extended losses from the previous session when the spread registered its lowest level since 2007.
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