The best day for North American stocks in two months

US equities rebounded on Monday as Treasury yields came off their high levels and more economic data signaled that the central bank might soften its tone in raising interest rates. S&P 500 and Nasdaq added 2.60% and 2.27%, respectively, and Canada’s S&P/TSX Composite rose 2.37%.

 

US manufacturing data showed that economic tightening might be working to combat inflation. Meanwhile, OPEC+ continues to make the work harder for central banks around the world with their latest decision to curb the cut production by a million barrels per day. US spending, however, came out strong in August, showing the US economy can withstand further tightening.

 

Elsewhere, Credit Suisse added to problems in Europe and was reported to have a troubling credit situation which some called it being close to bankruptcy. The news rattled the markets at the end of last week.

 

The latest inflation report in Europe was higher than expectations and showed a record-high double-digit 10.0% year-over-year increase in price levels in September. Rising energy and food prices were the main contributors.

 

The US treasury yields, climbing for nine straight weeks, topping 4%, dropped below 3.6% today, but markets are still wondering if the worst is behind us.