A day after the implementation of interest rate hikes by the Federal Reserve (Fed), global equities continued their upward rally while treasury yields fell for 3 consecutive days.
On the same day of the FOMC meeting, in the afternoon there was the publication of the gross domestic product (GDP) data for the 2nd quarter of the United States (US) which shrank 0.9%, missing the expected 0.4% following a contraction of 1.6% in the previous quarter.
It is understood that Wall Street started the trading session on a weak note before turning positive with the Dow Jones Industrial rising 1.03% at 32,529.63, the S&P 500 reaching 1.21% at 4,072.43 and the Nasdaq Composite adding 1.08% at 12,162.59.
The global stock benchmark jumped 1.24% and the pan-European STOXX 600 was down 1.09% even as the region grapples with a gas crisis and possible recession.
Meanwhile, Mona Mahajan who is a senior investment strategist said the decline in treasury yields foreshadows a slower tightening in the future.
The streak saw the bond market see the 2-year treasury yield fall again after it dipped below 3% on Wednesday.
The benchmark 10-year note rose 17/32 in price to yield 2.6723% from 2.732%, the 2-year note rose 6/32 in price to yield 2.8723% from 2.972% while the 20-year bond fell 12/32 in price to yield 3.0219% from 3.002%.
Currency trends saw the dollar index up 0.197% with the Euro down 0.06% at $1.0196 while the Japanese Yen firmed 1.71% at $134.27.
As for commodities, oil prices are seen to be slightly mixed following a string of reduced demand from a recession exacerbated by weak oil inventories and a rebound in US gasoline.
US crude was down 0.86% at $96.42 while Brent oil was up 0.49% at $107.14.
Spot gold added 1.3% to $1,756.59 an ounce after the economic contraction boosted interest in the safe-haven asset.
