Stock indices soared as investors took over affected stocks while 10-year U.S. treasury yields hit highs following hawkish Federal Reserve (Fed) signals after investors scrutinized details of FOMC meeting minutes.
The Wall Street market was seen returning gains during the final trading session with a focus on Pfizer Inc that jumped 4.3% after the medical company announced its purchase of ReViral Ltd in a deal worth US $ 525 million, its 2nd acquisition in less than 6 months.
Wedbush Securities Los Angeles managing director of equity trading, Michael James, said investors are now choosing some buys and in the last 2 weeks they have been trading in thin cash liquidity, so it makes it easier to have bigger up or down (volatile) movements. .
The Dow Jones Industrial average rose 87.06 points or 0.25% at 34,583.57, the S&P 500 hit 19.06 points or 0.43% at 4,500.21 and the Nasdaq Composite added 8.48 points or 0.06% at 13,897.30.
The European pan STOXX 600 index lost 0.21% and MSCI’s worldwide stock gauge was down 0.11%.
Meanwhile, St.Louis Fed President James Bullard one of the voters in the Federal Open Market Committee (FOMC) said the Fed was in an effort to curb inflation despite an increase in mortgage rates and government bond yields.
As a result, US treasury yields soared in line with expectations of rapid policy tightening by the Fed and other central banks.
2-year-10-year treasury yields spread as investors focused on the rate and scope of the Fed’s plan to reduce its balance sheet.
The yield of the 10-year treasury note was up 3.8 basis points at 2.647 while the 2-year note was down 4.5 basis points at 2.457%, uplifting the 2-10 spread at 18.72 basis points.
Last week’s inverted yield curve has signaled to some investors about the coming recession in 1 to 2 years.
Currency market summary, the dollar index rose 0.1% at 99.823, the highest level since May 2020 while the Euro remained at $ 1.0878.
