The Bank of Japan (BOJ) decided on Tuesday pAllow the 10-year bond yield to move in a wider 50 basis point band on both sides of his 0% target, versus expectations that he would make no changes to his meeting.
The energy and materials stocks led the gains among the main sectors of the S&Pwith an increase of 1.6% and 0.8%, since the Crude and metal prices rose against a weaker dollar.
Financials were up 0.9%, with bank shares benefiting from a rise in Treasury yields.
The Fed took a hawkish tone last week in his monetary policy meeting by saying that expect interest rates to stay high longer, causing a sell-off in the stock markets.
money market participants see a 61% chance that the Fed will raise its benchmark rate by 25 basis points in February to between 4.50%-4.75%, keeping the terminal rate at 4.9% for May 2023.
The Treasury bond prices fell following the BOJ move, with the benchmark 10-year Treasury yield rising to a three-week high of 3.68%.
The Dow Jones Industrial Average rose 121.38 points, or 0.37%, to 32,878.92Meanwhile he The S&P 500 was up 13.09 points, or 0.34%, at 3,830.75. The Nasdaq Composite added 34.91 points, or 0.33%, to 10,580.94.
Tesla Inc loses 2.6% after at least three brokerages to cut EV maker’s target price to between $177 and $285 on growing concerns about weak demand and the risk of distraction from Elon Musk’s Twitter.
Source: Ambito
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