US. stocks rose to a nearly four-week high as continuing gains in Treasuries pushed yields further below 2.9%, alleviating investor angst that higher rates will accelerate fiscal tightening.
The 10-year yield fell for a third straight day, reaching a two-week low.
In policy news, Fed Chair Jerome Powell will appear before the House Financial Services Committee Tuesday to discuss the Fed’s Semi-Annual Monetary Policy Report and the state of the economy; investors will look for clues on how quickly the Fed will continue to raise interest rates
European stocks continued their rebound from this month’s slump as concerns about rising U.S. yields eased.
The Euro Stoxx 50 gained 0.8%, as 17 industry groups out of 19 advanced. Commodity stocks followed gains in oil and metal prices.
In Asia overnight, Japanese stocks rose for a third day, gaining 1.1%, following a rally in U.S. equities amid receding concern that the Federal Reserve will rush to raise interest rates under new Chairman Jerome Powell. Chinese equities lost 1.1%.