A selloff has erased $ 9 trillion from the United States equity market so far this year.
Stocks bounced back after a selloff that erased $ 9 trillion from the US equity market this year, spurring what some traders called a short-covering rebound from oversold levels.
The S&P 500 climbed from a 13-month low, while the technology-heavy Nasdaq 100 outperformed. Despite the recovery, sentiment remained fragile amid worries over high inflation, tighter monetary policy and an economic slowdown. Investors will be sifting through comments from several Federal Reserve speakers for clues on the size and pace of looming rate hikes ahead of US inflation data on Wednesday. Treasury 10-year yields dropped below 3%, while the dollar wavered.
The US central bank’s interest rate increases may lead to somewhat higher unemployment as it attempts to bring about a “soft landing” while tackling high inflation, New York Fed President John Williams said. Meantime, His Richmond counterpart Thomas Barkin noted the Fed will hike to a level that neither stimulates nor suppresses demand and then decide whether it has to go further.
Here are key events to watch this week:
- US CPI, Wednesday
- EIA crude oil inventory report, Wednesday
- San Francisco Fed President Mary Daly speaks, Thursday
- US PPI, initial jobless claims, Thursday
- University of Michigan consumer sentiment, Friday
Some of the main moves in markets:
- The S&P 500 rose 1.9% as of 9:31 am New York time
- The Nasdaq 100 rose 2.8%
- The Dow Jones Industrial Average rose 1.5%
- The Stoxx Europe 600 rose 1.8%
- The MSCI World index rose 1.4%
- The Bloomberg Dollar Spot Index fell 0.1%
- The euro was little changed at $ 1,0560
- The British pound was slightly changed at $ 1.2335
- The Japanese yen rose 0.2% to 130.09 per dollar
- The yield on 10-year Treasuries declined five basis points to 2.98%
- Germany’s 10-year yield declined eight basis points to 1.01%
- Britain’s 10-year yield declined 11 basis points to 1.84%
- West Texas Intermediate crude rose 0.4% to $ 103.51 a barrel
- Gold futures rose 0.2% to $ 1,862.10 an ounce
–With assistance from Sunil Jagtiani, John Viljoen, Srinivasan Sivabalan, Vildana Hajric, Isabelle Lee and Lu Wang.