US stocks attempt to rebound as bond yields slip and investors move past hawkish Powell comments

US stocks attempt to rebound as bond yields slip and investors move past hawkish Powell comments
Getty Images / Bryan R. Smith
  • US stocks jumped on Tuesday as investors look to shake off Fed Chair Jerome Powell's hawkish speech from last week.
  • At Jackson Hole, he reiterated the Fed's resolve to tame inflation by continuing to raise interest rates.
  • Bond yields slowed their ascent on Tuesday after a two-day surge following Powell's speech.

US stocks traded higher on Tuesday in its first rebound attempt following Fed Chair Jerome Powell's hawkish speech at Jackson Hole on Friday.

Tuesday's move higher in the stock market came as bond yields looked to have hit a wall, slowing their ascent and briefly falling early Tuesday morning.

The subdued move in bond yields suggests investors aren't fully buying the extra-hawkish attitude that was on display by Powell last week, as he reiterated the Fed's resolve to tame inflation by raising interest rates and reducing its balance sheet.

Here's where US indexes stood shortly after the 9:30 a.m. ET open on Tuesday:

Twitter shares slipped Tuesday after Elon Musk cited a whistleblower who spoke out against the social media company as another reason to exit his pending multibillion-dollar takeover.


Oil prices slipped Tuesday, dropping back from their recent climb as traders look ahead to looming rate hikes from central banks, as well as the OPEC+ meeting next week. As inflation remains high in the US and Europe, markets are anticipating additional, aggressive rate hikes from central banks which could spark a slowdown.

Europe is close to hitting its targets for stockpiling natural gas ahead of winter, with countries two months ahead of schedule on storage as they scramble to replace Russian supplies. Inventory data shows the European Union had filled up its winter reserves to 79.94% as of Sunday, according to Gas Infrastructure Europe. That's just shy of its goal of 80% by November 1.

Warren Buffett's Berkshire Hathaway has trimmed its BYD stake for the first time in 14 years, a Hong Stock Exchange filing revealed Tuesday. The famed investor's conglomerate sold about 1.3 million shares of the Chinese electric-vehicle maker for around $47 million last week. The disposals reduced its position from 220 million shares to 218.7 million shares, the filing shows.

West Texas Intermediate crude oil fell 3.19% to $93.92 per barrel. Brent crude, oil's international benchmark, fell 3.37% to $101.55.

Bitcoin ticked up 0.45% to $20,363. Ether prices rose 1.89% to $1,573.


Gold fell 0.31% to $1,744.20 per ounce. The yield on the 10-year Treasury was flat at 3.10%.