- S&P 500 ends with more than 2%
- The profitability of the American treasury is rising
- The yen is lower against the dollar
- Crude oil settles higher
NEW YORK, June 21 (Reuters) – Shares of global indices rose sharply on Tuesday, with each major US stock index ending more than 2% after a recent sell-off as the Japanese yen fell against the US dollar to its lowest level. of October 1998
Wall Street has risen after participants returned from a long weekend, with investors buying shares in megacap companies and energy companies hit last week by global economic concerns. Read more
“After consecutive weeks of 5% declines, you’ve pushed the ball underwater enough, now that we’re getting a rebound,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.
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But, Nolte said, “interest rates are still rising. Oil is still rising.”
Energy stocks rose along with oil prices. Oil has risen amid high demand for fuel over the summer. read more The S&P 500 Energy Index (.SPNY) jumped 5.1%.
Last week, the S&P 500 confirmed it was in a bear market as investors sold stocks amid worries about whether the Federal Reserve would be able to curb inflation without causing a recession. Read more
Investors expect higher interest rates from other major central banks.
The Dow Jones Industrial Average (.DJI) rose 641.47 points, or 2.15%, to 30,530.25, the S&P 500 (.SPX) rose 89.95 points, or 2.45%, to 3764, 79, and the Nasdaq Composite added 5 points (.IX0. 2.51% to 11,069.30.
The pan-European index STOXX 600 (.STOXX) rose 0.35% and the valuation of MSCI shares around the world (.MIWD00000PUS) rose 1.91%.
US bond yields were higher as the risk-averse regime that weighed heavily on US markets last week took a breather.
The 10-year reference yield rose to 3.303% from their 3.239% close at the end of last week.
All eyes are now on Fed Chairman Jerome Powell’s testimony before the Senate Banking Committee on Wednesday for evidence of interest rates.
Goldman Sachs said it now believes there is a 30 percent chance that the U.S. economy will fall into recession next year, up from its previous 15 percent forecast. Read more
In the foreign exchange market, the yen fell to a new 24-year low. Read more
Japanese Prime Minister Fumio Kishida said the central bank must maintain its current extremely free monetary policy. This makes it extraordinary among other major central banks.
The dollar index was slightly changed at 104.41, but was generally supported by expectations of rising interest rates in the upcoming Fed meetings.
Brent crude futures rose 52 cents, or 0.5 percent, to $ 114.65 a barrel. The US West Texas Intermediate (WTI) crude for July expired on Tuesday, closing at $ 110.65, with a gain of $ 1.09, or 1%. The more active August contract rose $ 1.53 to $ 109.52.
Spot gold fell 0.3% to $ 1,832.77 an ounce.
Bitcoin last rose 1.56% to $ 20,876.57.
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Additional reports from Elizabeth Hawcroft in London; also by Devik Jain and Anisha Sirkar; Edited by Louise Havens, Chizu Nomiyama, Will Dunham, Mark Heinrich and Deepa Babington
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