The stock market rebounded as US treasury yields fell to a 2 -week low while copper prices fell to 16 -month levels on concerns of an economic slowdown.
For now investors are still trying to digest and look for opportunities behind the testimony of Federal Reserve (Fed) President Jerome Powell before Congress regarding a rate hike that ‘confirmed’ recessionary expectations.
Explained Peter Cardillo of Spartan Capital Securities, the stock market is seen trying to absorb the tightening of Fed policy and also positioning itself in a bearish market situation.
He added that equities were also seen to take advantage of the decline in yields and the market was currently easing a bit of a moderate recession.
As a result, the Dow Jones Industrial average index led Wall Street gains by 194.23 points (0.64%) at 30,677.36, the S&P 500 reached 35.84 points (0.95%) at 3,795.73 as a result of the push by Apple Inc and Nasdaq Composite shares added 179.11 (1.62%) at 11,232.19 .
MSCI’s worldwide stock benchmark rose 0.43% while the STOXX 600 index lost 0.82%.
The bond market saw the benchmark US 10 -year yield down 3.005% then rebound to 3.070% but has fallen from its highest record since April 2011 at 3.498%.
Currency movements saw the Euro fall 0.5% to $ 1.0509 on weaker -than -expected PMI data in Germany and France while it fell 1.4% against the Yen at 141.85 yen.
As for commodities, copper prices plunged from the top with rising rates and slow economic growth hurting demand and the London Metal Exchange (LME) reaching its lowest level since February 2021.
Meanwhile, Brent oil futures fell $ 1.69 at $ 110.05 a barrel while WTI crude oil futures fell $ 1.92 at $ 104.27 due to recessionary concerns.
