He S&P 500 rises 0.4%, after registering its worst loss in three weeks. He Dow Jones Industrial Average scale 163 points, or 0.5%, to the 34,362and the nasdaq does it in a 0.6%.
The star of the day is Fed Chairman Jrome powellwho will speak at an annual event of the fed which has been the scene of big policy announcements in the past.
The hope is that he says that heto drop in inflation in the last year is encouraging and that the Fed may have finished raising interest rates.
Wall Street: the expectation reigns in the last wheel
But those hopes have been dwindling after a series of economic reports better than expected, which could push up inflationand what is worrying is that Powell, at the very least, says there will be no rate cuts early next year, as some operators have bet.
Likewise, yields on 10-year Treasury bonds hit their highest level since 2007 as lExpectations that rates will continue to rise for longer. It went to 4.25% from 4.24% on Thursday and from 0.70% three years ago.
A high yield means that the bonds pay more interest to investors. They also make it less likely that investors pay high prices for stocks and other investments that can swing more sharply priced than bonds.
The threat of rates staying high for longer led to stocks tumbling in August after a year that had been a rocky one. resounding success.
Source: Ambito
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