On Wall Street, the Dow Jones index rose 0.7% and the S&P 500 1.6%, while the Nasdaq rose 2.6%. Equities recovered after their worst five-day decline since the start of the pandemic, while Treasuries rose across the board, and the 10-year yield fell as much as 13 basis points.
The prospect of a further rise has roiled markets since last week, after knowing the May inflation data published on Friday. The consumer price data reported a record increase in 40 years in the 12-month measurement, with 8.6%.
Markets and some economists quickly concluded that rates could also rise more than expected.not half a percentage point (or 50 basis points), but three quarters of a point (75 basis points), as it finally happened.
Concerns about rising inflation, higher borrowing costs and growing challenges to economic expansion weighed on global equities this year.
The benchmark S&P 500 ended Monday accumulating a drop of more than 20% from its closing all-time high on January 3, confirming that it is in a bear market.according to a commonly used definition.
Source: Ambito
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