US dollar surprisingly firm even though equities tick higher

Equities were resilient in the US on Monday but drifted down a bit later in the day. The US dollar was firm even when the equities were higher.

The volatility of the equity market i.e volatility index remained low at about 24-25.

US stocks ticked higher as Wall Street keeps wrestling with whether the economy will successfully avoid a recession amid rising interest rates and high inflation.

The S&P 500 and the NASDAQ edged higher. Both started the day with even bigger gains, following up on strength across European and Asian markets after China relaxed some tough anti-COVID measures. But stocks fell back a bit as Treasury yields continued to climb, putting downward pressure on stocks.

The yield on the 10-year Treasury, which helps set interest rates on mortgages and other loans, jumped back above 3 percent.

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The S&P 500 rose 12.89 points, or 0.3 percent, to 4,121.43.

The Dow Jones Industrial Average rose 16.08 points, or less than 0.1 percent, to 32,915.78.

The NASDAQ rose 48.64 points, or 0.4 percent, to 12,061.37.

The Russell 2000 index of smaller companies rose 6.83 points, or 0.4 percent, to 1,889.89.