Stocks staged a late week rebound driven by a tech rally and cooling inflation data. The S&P 500 gained about 0.1%, and AI-related shares like Nvidia and Oracle led gains, erasing earlier weekly losses amid renewed risk appetite.
In the bond market, Treasury yields edged higher modestly, with the 10-year note around 4.15%, reflecting mixed signals on Fed policy and persistent inflation concerns. Overall, markets showed resilience heading into year-end. Stock market money flow reflected year-end caution with limited fresh equity inflows, though ETF creations bolstered tech sectors.
Credit spreads stayed tight, with high-yield option-adjusted spreads near historical lows around 2.9%, underscoring strong corporate credit confidence. The VIX hovered around low-to-mid teens, signaling subdued volatility and investor calm.
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