© Archyde.com. Traders work at the New York Stock Exchange on December 9, 2021. Photo: Brendan McDermid/Archyde.com.
(Archyde.com) – U.S. 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.com, Tesla (NASDAQ:) and Microsoft jumped.
US stocks have suffered a sharp sell-off since mid-August after 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.
10-year benchmark yields have fallen from three-month highs hit earlier on Wednesday, giving a boost to interest-sensitive stocks such as Tesla and Microsoft.
According to preliminary data, the benchmark Standard & Poor’s 500 index closed up 71.90 points, or 1.84%, 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 industrial index 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 about five percent due to concerns about demand linked to the increasing risks of recession. The global benchmark fell below $90 a barrel.
(Prepared by Wagdy Al-Alfi for the Arabic Bulletin)