Cyber Monday Deal: Up to 60% off InvestingProCLAIM SALE

Stocks gain as investors mull chances of rate cut; bond yields rise

Published 2019-06-04, 11:04 a/m
© Reuters.  Stocks gain as investors mull chances of rate cut; bond yields rise
EUR/USD
-
US500
-
DJI
-
DX
-
LCO
-
CL
-
IXIC
-
US10YT=X
-
STOXX
-
MIWD00000PUS
-
DXY
-

* U.S. stocks bounce back from Monday technology sell-off

* U.S. bond yields off Monday lows

By Caroline Valetkevitch

NEW YORK, June 4 (Reuters) - Global stock indexes climbed on Tuesday as investors weighed the possibility of an interest rate cut from the Federal Reserve, while yields on 10-year U.S Treasuries moved higher.

Stocks held early gains and Treasury yields briefly trimmed their increase after Fed Chairman Jerome Powell said the central bank will respond "as appropriate" to the risks posed by a global trade war and other recent developments.

His remarks followed St. Louis Fed President James Bullard's comments late on Monday that a rate cut "may be warranted soon."

Strategists said Powell's comments suggested the Fed is considering its options.

"Investors are taking comfort in what appears to be a Fed that is contemplating cutting rates if the economy materially slows down,” said Michael Geraghty, equity strategist at Cornerstone Capital Group in New York.

In a brief statement included as part of a speech on broader monetary policy issues, Powell said the Fed was "closely monitoring the implications" of a trade dispute.

The United States' trade war with China and other countries has been escalating in recent weeks.

On Wall Street, stocks bounced back from a sell-off in technology stocks a day earlier, when the Nasdaq also confirmed a correction.

Worries about a clamp-down on the world's internet and social media giants and mounting recession jitters remained in the background for investors.

The Dow Jones Industrial Average .DJI rose 383.44 points, or 1.54%, to 25,203.22, the S&P 500 .SPX gained 36.39 points, or 1.33%, to 2,780.84 and the Nasdaq Composite .IXIC added 117.79 points, or 1.61%, to 7,450.80.

The pan-European STOXX 600 index .STOXX rose 0.39% and MSCI's gauge of stocks across the globe .MIWD00000PUS gained 0.84%.

In U.S. Treasuries, yields on benchmark 10-year Treasury notes US10YT=RR were up 4.00 basis points at 2.121% after falling to 2.061% on Monday, which was their lowest level since September 2017.

Jitters over the global economy have pushed investors into top-rated government bonds and other safety plays in recent weeks.

The dollar index .DXY rose 0.13%, with the euro EUR= down 0.05% to $1.1234.

The Japanese yen weakened 0.21% versus the greenback at 108.31 per dollar.

In the oil market, U.S. crude CLcv1 rose 0.49% to $53.51 per barrel and Brent LCOcv1 .

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ Record low RBA cash rate

https://tmsnrt.rs/2QFJt4n Yields, oil and stocks all locked in slide

https://tmsnrt.rs/2QJ5GOZ Asian stock markets

https://tmsnrt.rs/2zpUAr4

^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.