Wall Street Rebounds, ASX Soars

Stocks are rising on Wall Street in Monday afternoon trading.

The S&P 500 is up 2.9% in mid-afternoon trading. Nearly every stock in the benchmark index rose, more than making up for last week’s losses. The Dow Jones Industrial Average is up 2.2% and the Nasdaq is up his 3.6%.

The Australian stock market looks set to rise with futures showing a gain of 62 points (0.9%) in the AEDT at 05:06. on monday, ASX fell 1.4%.

The tech and telecommunications companies made the biggest profits on Wall Street. Apple rose his 2.9%, and Google’s parent company rose his 4.5%.

Bond yields have rebounded from multi-year highs, relieving some of the pressure on equities. Yields on 10-year US Treasuries, which affect mortgage rates, fell to 3.99% from 4.02% late Friday. The two-year Treasury yield, which tends to track expectations for future Federal Reserve action, fell to 4.44% from 4.50% at the end of Friday.

British bonds rallied after news that Britain’s new Treasury Secretary had abandoned nearly all of a string of unfunded tax cuts that have roiled markets. European markets generally rose and most Asian markets rose. Crude oil prices rose.

The broader market is coming out of a very volatile week with most major indices closing in the red. Investors continue to worry about high inflation and the potential for a recession to hit the U.S. and global economies. A big concern is the Fed’s aggressive policy of raising interest rates to keep inflation in check.

Wall Street focuses on the latest corporate earnings this week. Earnings and financial updates can help investors get a clearer picture of how businesses and consumers have been coping with inflation. Investors will also listen carefully to statements from corporate leaders that highlight the potential trajectory of future inflation and its expected impact on businesses.