A sell-off has wiped $9 trillion from the US stock market so far this year.
Stocks rebounded after a sell-off that wiped $9 trillion off the U.S. stock market this year, spurring what some traders called a short-hedging bounce from oversold levels.
The S&P 500 rose from a 13-month low, while the tech-heavy Nasdaq 100 outperformed. Despite the recovery, sentiment remained fragile amid concerns over high inflation, tighter monetary policy and an economic slowdown. Investors will be sifting through comments from several Federal Reserve commenters for clues about the scale and pace of impending rate hikes ahead of U.S. inflation data on Wednesday. 10-year Treasury yields fell below 3% as the dollar faltered.
Interest rate hikes by the U.S. central bank could lead to an uptick in unemployment as it tries to induce a ‘soft landing’ while tackling high inflation, the Fed chairman has said. New York, John Williams. Meanwhile, his Richmond counterpart, Thomas Barkin, noted that the Fed will rise to a level that neither stimulates nor suppresses demand, then decides whether to go further.
Here are the key events to watch this week:
- US CPI, Wednesday
- EIA Crude Oil Inventory Report, Wednesday
- San Francisco Fed President Mary Daly speaks on Thursday
- US PPI, first jobless claims, Thursday
- University of Michigan Consumer Sentiment Friday
Some of the major movements in the markets:
- The S&P 500 rose 1.9% at 9:31 a.m. PT
- The Nasdaq 100 rose 2.8%
- The Dow Jones Industrial Average rose 1.5%
- The Stoxx Europe 600 rose by 1.8%
- The MSCI World index rose 1.4%
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro was little changed at $1.0560
- The pound was little changed at $1.2335
- The Japanese yen rose 0.2% to 130.09 per dollar
- The yield on 10-year Treasury bills fell five basis points to 2.98%
- Germany’s 10-year yield fell eight basis points to 1.01%
- The UK 10-year yield fell 11 basis points to 1.84%
- West Texas Intermediate crude rose 0.4% to $103.51 a barrel
- Gold futures rose 0.2% to $1,862.10 an ounce
–With help from Sunil Jagtiani, John Viljoen, Srinivasan Sivabalan, Vildana Hajric, Isabelle Lee and Lu Wang.