Major US stock indexes rose on Wednesday, boosted by optimism amid signs of progress in peace talks between Ukraine and Russia, and after the Federal Reserve’s decision to raise interest rates.
The Dow rose 518.76 points, or 1.55%, for its first three-day winning streak in more than a month. The Standard & Poor’s 500 Index is up 2.24%, while the Nasdaq is up 3.77%.
Technology stocks, which have been broadly struggling since late last year, outperformed sharply on Wednesday. Facebook’s parent meta platform shares rose 6%, while Netflix added 4%.
The prospect of peace talks between Russia and Ukraine, Chinese stimulus and a hike in US interest rates lifted stocks and US Treasury yields on Wednesday.
The positive moves in stocks come after the Federal Reserve raised its benchmark interest rate for the first time since 2018 and indicated six more increases this year, spurring a rally in stocks.
The Fed has significantly raised its forecasts for interest rate hikes and inflation in 2022, but investors seem to be taking these changes as evidence that the central bank is taking rate hikes seriously.
Treasury yields
US 10-year Treasury yields rose to 2.204% on expectations of a Fed rate hike, their highest since June 2019. The five-year yield rose to 2.149%, the highest since May 2019.
The German 10-year government bond yield rose to its highest level since November 2018 at 0.403%.
Data, on Wednesday, showed that retail sales in the United States rose 0.3% in February; As rising gasoline and food prices forced households to cut spending on other goods, which could constrain economic growth this quarter.
European stocks
European shares ended higher on Wednesday amid renewed optimism about progress in talks between Russia and Ukraine, and with global markets awaiting the latest monetary policy numbers and economic outlook from the US Federal Reserve.
The pan-European Stoxx 600 ended temporarily around 3%, with major bourses and almost all sectors in positive territory. Technology stocks rose more than 6.5% to lead the gains, while utilities bucked the trend, dropping 0.8%.
Japanese stocks
As for Japanese stocks, the Nikkei index rose 1.64%, and the Topix index rose 1.46%.
The US dollar fell 0.29% against a basket of other currencies; It traded at 98.647, and settled against the yen at 118.32, albeit close to a five-year high in the previous session.
Spot gold also rose 0.16% to $1,920.38 an ounce.
(Archyde.com)