$Straits Times Index(STI.SI)$ 

US stocks rebound as Powell’s remarks considered not that hawkish

· US stocks closed near session highs after a volatile bout of trading on Tuesday.

· The Dow Jones Industrial Average jumped about 265 points, or 0.78%. The S&P 500 rose 1.29%. Meanwhile, the tech-heavy Nasdaq Composite outpaced the other two indices, gaining 1.9%.

· Earlier in the day, Jerome Powell said during a question-and-answer session with the Economic Club of Washington that the Fed may have to hike more than what's priced in if the labour market remains unexpectedly strong, though he predicted prices will decline significantly this year.

· Investors had forecast that the hot labour market data would inspire hawkish rhetoric from the Fed boss but his messaging was consistent with what he said last week, when the Fed increased rates by 25 basis points to a band of 4.5% to 4.75%. The takeaway is that Powell had a chance to signal a shift to a more aggressive posture, but he didn’t.

· Consistent with that, short-dated bond yields dipped moderately. The two-year Treasury yield, a barometer for expectations about the federal funds rate.

· In separate comments Fed Bank of Minneapolis President Neel Kashkari said the Fed would likely have to raise interest rates to 5.4% at the top of its target range given the strength in the US jobs market.

· Elsewhere in markets, European stock markets paused from two days of selling. Europe’s benchmark Stoxx 600 index closed up by 0.2%. The FTSE 100 was a standout performer, up 0.4% after strong earnings from oil major BP.

· Stocks in Asia are primed for a mixed open following the late rally in US shares. Chinese shares ended the Tuesday session broadly higher as investor sentiment was buoyed by supportive measures for the property market.

· Some AI-related stocks rallied after Baidu confirmed that it will launch an artificial intelligence chat bot in March. Oil jumped as investors grew more confident in China's demand outlook. Hong Kong’s Hang Seng index closed 0.4% higher.

· The buoyancy was absent in the local market as the Straits Times Index fell 0.2%, as investor sentiment took a hit from the usual suspects: possible interest-rate hikes by the US Federal Reserve, inflation and worsening US-China ties.

@TigerStars 

DYODD 

# 💰 Stocks to watch today?(29 Mar)

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Report

Comment7

  • Top
  • Latest
  • SunnyRainbow
    ·2023-02-08
    [Like]
    Reply
    Report
  • DavJunRong
    ·2023-02-08
    Yo
    Reply
    Report
  • Biggoldenpig
    ·2023-02-08
    k
    Reply
    Report
  • tobe.....
    ·2023-02-08
    thanks
    Reply
    Report
  • yinghao94
    ·2023-02-08
    nice
    Reply
    Report
  • cactuspot
    ·2023-02-08
    👍
    Reply
    Report
  • LMSunshine
    ·2023-02-08
    Thanks❣️
    Reply
    Report