Stock market tilts lower as 10-year Treasury yield hits more than two-year low

The S&P 500 index clinched another all-time high on Tuesday afternoon, even as trading in assets perceived as safe havens, like U.S. Treasuries, benefitted from pessimism about the global economic outlook and the prospect of an ongoing trade war with China.

How are benchmarks faring?

The Dow Jones Industrial Average DJIA, +0.26% was up 69 points, or 0.26%, at 26,786.75, the S&P 500 SPX, +0.29% gained 0.29%, or 8.7 points, setting a new record of 2,973.02, while the Nasdaq Composite Index COMP, +0.22% closed about 18 points higher, or 0.22%, to reach 8,1069.06.

On Monday, the Dow closed up 117 points, or 0.44%, to 26,717.43, briefly trading above its closing record at 26,828.39 during that session, while the S&P 500 index held on to a 0.8% gain, or 23 points, at 2,964.33, setting an intraday record at 2,977.86. The Nasdaq Composite was 85 points higher, or 1.1%, at 8,091.16. The Dow and the Nasdaq are within 1% of their records.

What’s driving the market?

Low debt yields globally and the prospect of renewed monetary policy stimulus from global central banks are encouraging equity investors.

But the truce in the trade war between the U.S .and China resulting from last weekend’s G-20 meeting in Japan still leaves substantive issues unresolved and does little to turn around weak business spending and manufacturing activity data, analysts noted.

Wall Street was also digesting the latest on import tariff disputes after President Donald Trump told reporters late Monday that a new round of Sino-American negotiations had begun via phone on the heels of a face-to-face meeting between Trump and China President Xi Jinping on the sidelines of the Group of 20 gathering of major developed countries over the weekend.

White House economic adviser Peter Navarro told CNBC Tuesday that while negotiations have begun, “this will take

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