US stocks rise after yields fall on Powell’s comments

  • US stocks rise after Powell’s comments
  • Oil prices go down
  • The dollar is falling

NEW YORK (Reuters) – Major US stock indexes rose on Wednesday after Federal Reserve Chairman Jerome Powell said the US central bank is “strongly committed” to lowering inflation, while benchmark Treasury yields fell.

Stocks turned positive after Powell’s testimony before the US Senate Banking Committee. The US dollar fell and the dollar index fell 0.431%.

“The market is reading this positively…it is very committed to tackling inflation,” said Tim Gresky, senior portfolio strategist at Ingalls & Snyder in New York. “It is sensitive because higher rates will harm parts of the economy, but this is necessary to achieve price stability.”

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The Federal Reserve recently raised its benchmark overnight interest rate by three-quarters of a percentage point — its largest increase since 1994. Read more

The Nasdaq index led the gains on Wall Street.

The Dow Jones Industrial Average rose 31.4 points, or 0.1%, to 30561.65 (.SPX), increased 10.22 points, or 0.27%, to 3775.01, and the Nasdaq Composite (nineteenth) added 72.36 points, or 0.65%, to 11,141.66 points. .

The Pan-European STOXX 600 Index (.stoxx) lost 0.67% and the MSCI World Stock Index (.MIWD00000PUS) lost 0.22%.

Overnight, MSCI’s broadest index of Asia Pacific shares outside Japan (MIAPJ0000PUS.) fell 2.3 percent, close to a five-week low.

Investors continue to gauge their concern that central banks could push the global economy into recession as they try to contain inflation by raising interest rates.

The Bank of Japan monetary policy meeting minutes released on Wednesday showed the central bank’s concerns about the impact of currency devaluation on the country’s business environment. See more information

The Japanese yen rose 0.53% to 135.89 against the dollar.

In Treasuries, the benchmark 10-year yield rose 3.151% after hitting 3.498% on June 14, the highest level since April 2011.

In commodities, US crude was recently down 4.56% to $104.53 a barrel and Brent crude at $109.76, down 4.27% on the day. See more information

Investors digested news related to US President Joe Biden’s plan to cut fuel costs for motorists. See more information

Spot gold rose 0.4% to trade at $1,839.71 an ounce.

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(Carolyn Valitkevich reports). Additional reporting by Mark Jones in London, Sam Byford in Tokyo, Shadia Nasrallah in Bangalore and Stephen Kolb in New York. Editing by William MacLean and Will Dunham

Our Standards: Thomson Reuters Trust Principles.

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