Global stocks rise as Fed Chair Jerome Powell confirms interest rates will remain low for longer
stocksgained Thursday after Jerome Powellstruck a reassuring tone for central-bank policy.
Fedchairman said it could take more than three years before inflation reached the Fed's target of 2%.
- Yield on the 10-year US Treasury note rose to 1.4%, its highest in a year.
Global stocks rose Thursday after Federal Reserve Chairman Jerome Powell wrapped up his two-day congressional testimony by assuring that US
Powell's remarks led to a sharp turnaround across numerous asset classes, Deutsche Bank's Jim Reid said. After falling by as much as 0.56% shortly after Wednesday's open, the S&P 500 ended the session 1.14% higher in its strongest daily performance in over three weeks.
Powell has "again been pouring oil on troubled
In his remarks to the House Financial Services Committee, Powell said it could take more than three years before inflation reached the Fed's target of 2%. That helped to reiterate the message that the central bank was in no rush to pare back on
That was enough for the "perpetual circling dip-buyers in multiple asset classes to re-emerge from hiding," wrote Jeffrey Halley, a senior market analyst at OANDA.
"With the Fed confirming that it will look beyond any short-term spike in inflation, we see real rates on cash deposits remaining negative," said Mark Haefele, the chief investment officer at UBS Global Wealth Management. "Against this backdrop, investors should continue to search for positive real yields."
Another positive for markets was that the US Food and Drug Administration released data showing Johnson & Johnson's single-dose coronavirus vaccine was safe and effective. It's expected to become the third vaccine to reach the American public, after Moderna and Pfizer-BioNTech's products, as its efficacy paves the way for emergency authorization.
In the UK, a think tank is urging Chancellor of the Exchequer Rishi Sunak to deliver a £100 billion, or $140 billion, fiscal boost to help the economy recover from the damage caused by the pandemic. The Times reported that Sunak was preparing for the holiday on stamp duty, or the home-purchase tax, to be extended until the end of June.
In Asia, the Hong Kong government announced stamp duty would rise on stock transactions for the first time in three decades. China's Shanghai Composite rose 0.6%, Japan's Nikkei rose 1.6%, and Hong Kong's Hang Seng rose 1%.
Data released by the Energy Information Administration showed US oil production suffered a 10% drop due to the Texas power cuts. Combined with an uber-dovish Powell and an already-tight physical market, oil prices extended this month's rally. Brent Crude rose 0.8%, to $66.72, and West Texas Intermediate rose 0.7%, to $63.72.
- Toyota was right about hybrid cars all along
- The youngest son of Asia's richest man is getting married, and the pre-wedding event features Rihanna, a 9-page dress code, and live animals
- Check out some of the best and most daring looks at Ambani's pre-wedding bash — from Rihanna to Mark Zuckerberg
- Impact of AI on Customer Service
- Bengaluru cafe blast: Karnataka CM Siddaramaiah to chair meeting with top police officials today
- India retains full policy space for benefit of farmers, fishermen at WTO: Goyal
- Sensex, Nifty settle at new closing high levels in first part of special live trading session
- Passive Income Streams