US stock indexes jumped on Wednesday following a recent sell-off, with bond yields plunging as investors waited for more clarity on the Federal Reserve’s plans to tighten monetary policy.
The technology-heavy Nasdaq index led the gains among the major indexes and rebounded from seven consecutive sessions of losses. Shares of Amazon, Tesla and Microsoft jumped.
US stocks have suffered a sharp sell-off since mid-August following hawkish comments from Federal Reserve Chairman Jerome Powell, exacerbated by signs of an economic slowdown in Europe and China, and strong moves by major central banks to tame inflation.
Data indicating strength in the US economy prompted traders to bet on a 75 basis point interest rate increase from the Federal Reserve this month.
Yields on benchmark 10-year US Treasury bonds have fallen from three-month highs hit earlier today, giving a boost to interest-sensitive stocks such as Tesla and Microsoft.
The Standard & Poor’s 500 index closed up 71.90 points, or 1.84 percent, to 3,980.09 points, while the Nasdaq Composite Index jumped 246.67 points, or 2.14 percent, to close at 11,791.58 points.
The Dow Jones Industrial Average rose 439.05 points, or 1.41 percent, to 3,1583.69 points.
The shares of energy companies bucked the market trend, to close its index down regarding five percent due to concerns regarding demand linked to the increasing risks of recession. Brent crude, the global benchmark, fell below $90 a barrel.
(Archyde.com)