Stocks jumped on Monday, with the three major indexes recovering some of last week’s steep losses as an initial jolt following the Federal Reserve’s updated outlook for rates subsided.
The Dow added nearly 600 points, or 1.8%, and had its best day since March. Last week, the index logged a weekly loss of more than 3% in its worst showing since October. The S&P 500 and Nasdaq were also each higher on the day.
Treasury yields on the long end of the curve ticked up to recover after a downward slide late last week, and the benchmark 10-year yield ticked back above 1.49% after reaching as high as 1.59% last week. Still, the yield curve has flattened in the wake of the Fed’s latest policy update, and the spread between the five and 30-year Treasury yield narrowed to the smallest margin since August Monday morning, according to Bloomberg data.
Traders this week are continuing to reconsider their investments in light of the Federal…