Global stock markets eased concerns about rising interest rates with a boom in technology stocks while part of the treasury yield curve signaled a recession risk.
The turbulent Wall Street market saw it hit higher levels, driven by Tesla shares that soared following news of the company seeking investor approval for a share split.
However, some analysts say the stock flow may not be permanent as interest rates are likely to rise higher this year, further slowing economic growth.
According to Lisa Shalett, head of investments at Morgan Stanley Wealth Management, it was a confusing 2 -week period in which the Nasdaq tech index made a strong bounce, yet at the same time interest rates jumped to record highs.
He added that as the yield curve is heading in the direction of an inversion, then the new bounce on tech stocks is likely to come to a halt.
The Nasdaq Composite index jumped 1.31%, the Dow Jones Industrial average index rose 0.27%and the S&P 500 reached 0.71%.
The MSCI worldwide stock index benchmark rose 0.39%.
For the treasury market, the yield curves for 2 -year and 10 -year treasuries imply a high recession risk although the curves for 3 -month bills and 10 -year treasuries still show strong economic expansion.
Fixed income analysts said the inverse yield curve showed some investors believed that tightening Federal Reserve (Fed) policy would hurt economic growth.
2 -year treasury yield rose 2.334% while 10 -year treasury yield declined 2.459% after it jumped to 2.5% for the first time since 2019.
Summary on the currency, the action of the Central Bank of Japan (BOJ) which is committed to buying an unlimited amount of government bonds has caused the Yen to plunge to a 6 -year low.
The yen slipped 1.4% against the dollar at 123.87 per dollar after it slumped 2.5% at one point to record the biggest one -day decline since March 2020.
Summary on commodities, movement control restrictions in Shanghai, China not only affected stocks but also oil prices as investors expected weak demand.
U.S. crude was down 9.14% at $ 103.49 a barrel while Brent crude was down 9.1% at $ 109.70.
Gold was down 1.35% at $ 1,931 an ounce.
