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Stocks wavered Tuesday as Wall Street shook off a surprise move from the Bank of Japan that sent global bond yields up and fears that a year-end rally may not come to pass.
The Dow Jones Industrials held onto gains of 46.42 points to break for lunch at 32,803.96
The S&P 500 was unchanged at 3,817.66.
The NASDAQ Composite Index sank yet again, 18.99 points, to 10,527.04. All three major averages erased rallies from the morning as investors weigh hawkish central banks and recession worries.
Overnight on Tuesday, the Bank of Japan moved to widen its cap on the 10-year Japanese government bond yield, catching traders around the world off guard. That added to pressure from other hawkish central banks, with both the European Central Bank and the Federal Reserve raising rates last week and stoking recession fears.
A handful of big companies will report their quarterly results this week ahead of the Christmas holiday. General Mills will report before the bell Tuesday. Nike and FedEx are set to report after the bell.
In economic data, housing starts data for November are due Tuesday morning. This week promises lots of insight into the housing industry. Sales data for existing homes will be released Friday, new homes Friday.
November’s personal consumption expenditures report, a preferred measure of inflation for the Fed, is due on Friday.
Prices for the 10-year Treasury hurtled earthward, raising yields to 3.68% from Monday’s 3.59%. Treasury prices and yields move in opposite directions.
Oil prices dipped 23 cents to $74.96 U.S. a barrel.
Gold prices popped $28.70 to $1,826.4.10 U.S. an ounce.
