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The markets on Wall Street closed their best week since the end of January

The markets on Wall Street closed their best week since the end of January

Sentiment remained upbeat in the market, despite a report showing resilience in the services sector, as some investors bet the impact of the Federal Reserve’s (FED) hikes on the economy would be delayed.

All eyes will now be on next week’s non-farm production reportlooking for clues as to whether the economy can handle more rate hikes.

Investors took heart after Raphael Bostic, Atlanta Fed president, said Thursday that the Federal Reserve could possibly halt its rate hikes sometime this summer.

This is a stance that traders interpreted as dovish, despite Bostic colleagues saying decisions would remain data driven and further rate hikes are expected.

“Traders remain bullish because even the most hawkish Fed officials have not suggested that rates should go beyond already established levels,” Priya Misra, global head of rate strategy at TD Securities, told Bloomberg.

“Markets have priced in a top Fed policy rate of 5.5% in September. We have to see how the data plays out in the second quarter.”he added.

Source: Ambito

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