Wall Street equity indexes were up 1% on Monday, while US Treasury yields fell from near six-week highs as investors bet that key US economic data due on Tuesday would show inflation is easing. .
We The Bureau of Labor Statistics is scheduled on Tuesday to release January’s consumer price index (CPI) data, which is expected to show how effective Federal Reserve policy has been in reducing inflation.
US equities lost some ground last week but rallied in the early weeks of 2023, buoyed by the prospect of slowing inflation, which could allow the Federal Reserve to slow or halt rate hikes.
“Investors are positioning themselves ahead of what they believe will be a favorable inflation report that could lead to an upward push in equity prices,” said Sam Stovall, chief investment strategist at CFRA Research. New York,
decline in Sleep According to Stovall, oil prices also reflected expectations of easing inflationary pressures.
With a whole host of economic reports due out this week, including retail sales and industrial production, Brian Klimke, director of investments at Cetera Investment Management LLC, said he expects more volatility as investors wonder about what the Fed might do. Reconcile the data with the expectations.
The Dow Jones Industrial Average rose 282.33 points, or 0.83%, to 34,151.6, the S&P 500 rose 34.64 points, or 0.85%, to 4,125.1 and the Nasdaq Composite rose 135.11 points, or 1.15%, to 11,853.23.
The pan-European STOXX 600 index closed up 0.90%. Emerging market shares rose 0.03%.
The MSCI All-World index, which includes stocks around the world, rose 0.67%. After rising more than 8% in the first five weeks of 2023, it fell 1.3% last week.
In US Treasuries, the benchmark 10-year yield edged lower after hitting its highest level since early January.
The benchmark 10-year note fell 2.6 basis points to 3.717% from 3.743% late Friday. The 30-year bond was down 3.6 basis points to yield 3.7897%. The 2-year note was last up 2.3 basis points at 4.5365%.
After rising earlier, the dollar fell against a basket of major currencies and was down 0.251%, with the euro rising 0.37% to $1.0715.
However, the greenback touched its highest since January 6 against the rate-sensitive Japanese yen on conditions that the Fed would keep monetary policy tight for a longer period.
Also sources said on Friday that former Bank of Japan board member Kazuo Ueda is set to become the next governor. In an interview the same day, Ueda said that it was appropriate for the BOJ to maintain its current ultra-easy policy.
The Japanese yen weakened 0.79% versus the greenback at 132.47 per dollar, while sterling last traded at $1.2131, up 0.61% on the day.
Oil prices recovered slightly from early losses as investors weighed Russian plans to cut crude production and ease short-term demand concerns ahead of US inflation data.
US crude was up 0.5% at $80.14 a barrel and Brent was up 0.25% at $86.61.
Spot gold fell 0.6% to $1,852.69 an ounce. US gold futures fell 0.69% to $1,851.90 an ounce.
The text of this story is published from a wire agency feed without any modification. Only the headline has been changed.
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