A day after the release of the minutes of a Federal Reserve (Fed) meeting that saw flexible decisions including the possibility of a rate hike pause has caused stocks to soar.
Generally, a majority of Fed officials are seen supporting a 50 basis point rate hike in June and July, in addition to Bank of America (BOA) analysts stating that the Fed will stop the hike in September should the economy slump.
Subsequently, Wall Street closed positive with the Dow Jones Industrial up 516.91 points or 1.61% at 32,637.19, the S&P 500 reaching 79.11 points or 1.99% at 4,057.84 and the Nasdaq Composite adding 305.91 points or 2.68% at 11,740.65.
It is understood that the excellent performance on US stocks will end its longest bearish session and will reach its biggest weekly gain since mid -March.
Heading into other indices, the benchmark MSCI worldwide stocks jumped 1.54% and the pan-European STOXX 600 index rose 0.78% while the MSCI Asia-Pacific broad index of stocks outside Japan fell 0.02%.
Meanwhile, US unemployment benefit claims data were also seen falling from expectations last week due to the strengthening of the labor market while a separate report saw Uncle Sam's country's economy contract in the first quarter.
Currency movements were also seen to be affected by the minutes of the meeting with the dollar down 0.284% against a number of other currencies while the Euro rose 0.44% at $ 1.0727.
US Treasury yields moved higher after the 10 -year benchmark note fell to a 6 -week low, signaling slower growth eased inflation concerns.
According to Kendall Capital President and CEO Clark Kendall the yield of the 10 -year Treasury note rising 2.7416% approaching 3% indicates that the Fed is tackling the problem of inflation.
As for commodities, US gold futures were seen down 0.17% at $ 1,849.50
