Stocks rallied, Treasury yields fell after Powell’s statement According to Reuters

© Reuters. FILE PHOTO: People walk past a screen showing the Hang Seng stock index in Central District, Hong Kong, China October 25, 2022. REUTERS/Lam Yik/File Photo

By Sinéad Carew and Dhara Ranasinghe

LONDON (Reuters) – Wall Street stocks rose on Wednesday while US Treasury yields fell and the dollar depreciated after Federal Reserve Chairman Jerome Powell said the central bank could decelerate rate hike “as soon as December,” even as he warned that inflation remains too high.

His words seemed to ease investors’ fears of a more hawkish statement even as Powell warned that the fight against inflation was far from over and key questions remained unanswered. , including how high interest rates will eventually need to go and for how long.

Sameer Samana, senior global market strategist at Global Markets, said: “The market is drinking half of this glass of water, which could be the worse approach. Powell really didn’t say anything new like this. so”. Wells Fargo (NYSE:) Investment Institute in Charlotte, North Carolina.

“The path of least resistance since the last inflation figure has been higher,” Samana said. “There’s momentum to the upside until something completely stops it.”

“Policy continues to tighten. People just don’t appreciate it,” he added, noting that even if the Fed pauses to raise rates, it’s still shrinking its balance sheet, which he considers “closer.” as important if not more important than the level of proportion.”

The index increased by 210.82 points, or 0.62%, to 34,063.35, the index increased by 48.55 points, or 1.23%, to 4,006.18 and increased by 228.54 points, or 2, 08%, to 11,212.32.

The MSCI Global Equity Index rose 1.19%. Emerging market shares rose 2.06%.

As for Treasuries, the 10-year benchmark fell 3.9 basis points to 3.709%, from 3,748% late Monday. The last 30-year bond fell 1.1 basis points to 3,7912%, from 3,802%. The last two-year bond fell 4.5 basis points to 4,4277%, from 4,473%.

In currencies, the euro fell 0.533%, with the euro up 0.46% to $1.0374.

The Japanese yen was up 0.35% against the greenback at 138.23 to the dollar, while the British pound last traded at $1.2011, up 0.49% on the day.

Oil prices rose on Wednesday on signs of tighter supply, a weaker dollar and optimism about demand recovery in China.

rose 3.04% to $80.58 a barrel and was at $85.41, up 2.87% on the day.

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