December 6, 2022

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US stocks jump 2% after recent sell-off;  The yen falls against the dollar

US stocks jump 2% after recent sell-off; The yen falls against the dollar

  • The S&P 500 finished over 2%.
  • US Treasury yields rise
  • The yen falls against the dollar
  • Crude oil settles higher

NEW YORK (Reuters) – Shares on global indices rose sharply on Tuesday, with each of the major US stock indexes closing more than 2% following the recent sell-off, while the Japanese yen fell against the US dollar to its lowest level since October. 1998.

Wall Street jumped as participants returned from a long weekend, as investors bought shares of giant growth companies and energy companies were hit last week by global economic worries. Read more

“After consecutive weeks of 5% declines, I’ve pushed the underwater ball far enough now that we’re seeing a bounce,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

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But Nolte said: “Interest rates are still going up. Oil is still going up.”

Energy stocks jumped along with oil prices. Oil gained due to the high demand for fuel in the summer. READ MORE S&P 500 Energy Indicator (.SPNY) It jumped 5.1%.

Last week, the S&P 500 confirmed that it was in a bear market as investors sold stocks amid concerns about whether the Federal Reserve would be able to tame inflation without causing a recession. Read more

Investors are anticipating rate hikes from other major central banks as well.

Dow Jones Industrial Average (.DJI) The S&P 500 rose 641.47 points, or 2.15%, to 30,530.25 (.SPX) It rose 89.95 points, or 2.45%, to 3,764.79, and the Nasdaq Composite (nineteenth) It added 270.95 points, or 2.51%, to 11069.30.

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Pan-European STOXX 600 Index (.stoxx) It rose 0.35% and the MSCI gauge of stocks worldwide (.MIWD00000PUS) Gained 1.91%.

US Treasury yields were higher as the risk aversion situation that affected US markets last week took a breather.

The benchmark 10-year yield rose to 3.303% from a close of 3.239% at the end of last week.

All eyes now turn to Fed Chair Jerome Powell’s testimony before the Senate Banking Committee on Wednesday for clues about interest rates.

Goldman Sachs said it now believes there is a 30% chance the US economy will slip into recession over the next year, up from its previous forecast of 15%. Read more

In the foreign exchange market, the yen fell to a new low in 24 years. Read more

Japanese Prime Minister Fumio Kishida said that the central bank should maintain its current ultra-loose monetary policy. This makes it a remote area among the other major central banks.

The Dollar Index was little changed at 104.41, but was generally supported by expectations of a rate hike at the upcoming Federal Reserve meetings.

Brent crude futures rose 52 cents, or 0.5 percent, to settle at $114.65 a barrel. The US West Texas Intermediate (WTI) crude contract for July expired on Tuesday, closing at $110.65, up $1.09, or 1%. The most active August contract rose $1.53 to $109.52.

Spot gold fell 0.3% to $1,832.77 an ounce.

Bitcoin was last up 1.56% at $20876.57.

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Additional reporting by Elizabeth Hawcroft in London. also by Devik Jain and Anisha Sircar; Editing by Louise Heavens, Chizu Nomiyama, Will Dunham, Mark Heinrich and Deepa Babington

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Our criteria: Thomson Reuters Trust Principles.