Stock Market Bounces Again, Investor Confidence Sentiment Recovers

thecekodok

 The Wall Street stock market saw its shares rebound from a 2-day slump and treasury yields retreated after investors digested the Federal Reserve’s (Fed) statement on this year’s interest rate hike as expected.


Fed Chairman Jerome Powell said the Fed expected to raise interest rates and end asset purchases this year but had not yet set a time for the tightening of monetary policy.


A note released by ANZ Bank of Australia analysts said investor sentiment recovered following comments from Jerome Powell on the Fed's readiness to tighten its monetary policy to maintain price stability.


The Dow Jones Industrial average was up 0.51%, the S&P 500 added 0.92%and the Nasdaq Composite was up 1.41%.


The pan -European STOXX 600 index rose 0.84% ​​and the worldwide MSCI stock gauge added 0.94%.



The 10 -year yield benchmark retreated to 1.741% after hitting a 2 -year high of over 1.8% overnight.


The 2 -year treasury yield was down 0.8966% from a February 2020 high of 0.945%.


Meanwhile, the recovery of sentiment towards risk-on has caused the US dollar to fall with the dollar index falling 0.34% at 95.614 while the Euro rose 0.3% at $ 1.13670.


The weaker dollar also benefited the bullion as spot gold added 1.2% at $ 1,822.75 per ounce and gold futures reached 1.34% at $ 1,822.50 per ounce.


Oil prices rose $ 82 a barrel as a result of tight supply support and expectations of the spread of the Omicron variant did not affect the recovery in global demand with US crude up 3.82% at $ 81.22 a barrel and Brent crude 3.52% at $ 83.72.


Bitcoin rose 2.1% to $ 42,722.21 from a drop below $ 40,000 on the first previous day since September.

Tags