Dow ekes out 16-point gain as markets seek rebound from losing week

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June 6 (UPI) — U.S. markets rose slightly on Monday after giving up early gains as stocks sought to bounce back from losses in the first week of trading for June.

The Dow Jones Industrial Average gained 16.08 points, or 0.049%, after having climbed as much as 300 points earlier in the day. The S&P 500 also increased 0.31%, while the Nasdaq Composite ended the day up 0.4%.

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The market decline came as the 10-year treasury yield topped 3%, its highest level this month.

The surge in the treasury yield did not, however, cause a major decline in equities.

“The shock has worn off of piercing that 3% level for the 10-year. We’ve been there before and we came back,” Wayne Wicker, chief investment officer at MissionSquare Retirement said. “While certainly interest rates moving up is something that equity guys don’t like, it’s somewhat of a foregone conclusion that we’re going to see higher rates in the near term. The question is has the bond market priced a lot of that in yet.”

Shares of Amazon stock rose 1.99% after a 20-for-1 stock split, while Amgen stock dropped 1.21% and Salesforce stock declined 1.1% to weigh down the Dow.

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Markets were seeking to rebound from a losing week that saw a market sell-off despite the Labor Department’s May job report showing that employment increased by 390,000 jobs, beating Wall Street’s expectations.

Investors have been facing concerns that the Federal Reserve may raise interests rates too much too quickly and cause a recession.

“As Fed speakers consistently remind us that the path toward draining inflationary pressures from the economy is going to be ‘bumpy’ and ‘painful,’ the market agrees as it navigates between seeing the next recession around the corner to witnessing a still healthy economic backdrop,” LPL Financial Chief Equity Strategist Quincy Krosby said.