US stocks jump 2% after recent sell-off; The yen falls against the dollar

  • The S&P 500 finished over 2%.
  • US Treasury yields rise
  • The yen falls against the dollar
  • Crude oil settles higher

NEW YORK (Reuters) – Shares on global indices rose sharply on Tuesday, with each of the major US stock indexes closing more than 2% following the recent sell-off, while the Japanese yen fell against the US dollar to its lowest level since October. 1998.

Wall Street jumped as participants returned from a long weekend, as investors bought shares of giant growth companies and energy companies were hit last week by global economic worries. Read more

Energy stocks jumped along with oil prices. Oil gained due to the high demand for fuel in the summer. Read more

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“After consecutive weeks of 5% declines, I’ve pushed the underwater ball far enough now that we’re seeing a bounce,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

But Nolte said: “Interest rates are still going up. Oil is still going up.”

Expectations of interest rate hikes from major central banks and concerns about a global recession have kept investors on edge. Central banks are expected to tighten their policy to combat high inflation.

Dow Jones Industrial Average (.DJI) The S&P 500 rose 641.47 points, or 2.15%, to 30,530.25 (.SPX) It rose 89.95 points, or 2.45%, to 3,764.79, and the Nasdaq Composite (nineteenth) It added 270.95 points, or 2.51%, to 11069.30.

Pan-European STOXX 600 Index (.stoxx) It rose 0.35% and the MSCI gauge of stocks worldwide (.MIWD00000PUS) 1.83% profit.

US Treasury yields were higher as the risk aversion situation that affected US markets last week took a breather.

The benchmark 10-year bond yield was 3.305%, up from its 3.239% close at the end of last week.

All eyes now turn to Fed Chair Jerome Powell’s testimony before the Senate Banking Committee on Wednesday for clues about interest rates.

Goldman Sachs said it now believes there is a 30% chance the US economy will slip into recession over the next year, up from its previous forecast of 15%. Read more

In the foreign exchange market, the Japanese yen fell against the US dollar to 136.330 against the dollar. Read more

Japanese Prime Minister Fumio Kishida said that the central bank should maintain its current ultra-loose monetary policy. This makes it a remote area among the other major central banks. Read more

Brent crude futures rose 52 cents, or 0.5 percent, to settle at $114.65 a barrel. The US West Texas Intermediate (WTI) crude contract for July expired on Tuesday, closing at $110.65, up $1.09, or 1%. The most active August contract rose $1.53 to $109.52.

Spot gold fell 0.3% to $1,832.27 an ounce.

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Additional reporting by Elizabeth Hawcroft in London. also by Devik Jain and Anisha Sircar; Editing by Louise Heavens, Chizu Nomiyama, Will Dunham and Mark Heinrich

Our criteria: Thomson Reuters Trust Principles.

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