A sell-off has wiped $9 trillion from the US stock market so far this year.
For Bloomberg
Posted on May 10, 2022
Stocks rallied after a sell-off that wiped $9 trillion off the US stock market this year, spurring what some traders called a short-covering rebound from oversold levels.
The S&P 500 rose from a 13-month low, while the tech-heavy Nasdaq 100 outperformed. Despite the recovery, confidence remained fragile amid concerns about high inflation, tighter monetary policy and an economic slowdown. Investors will scrutinize comments from various Federal Reserve speakers for clues about the size and pace of looming rate hikes ahead of US inflation data on Wednesday. 10-year Treasury yields fell below 3%, while the dollar faltered.
The US central bank’s interest rate hikes may lead to somewhat higher unemployment as it tries to achieve a “soft landing” while tackling high inflation, New York Fed President John Williams. Meanwhile, his Richmond counterpart Thomas Barkin said the Fed will raise to a level that neither stimulates nor suppresses demand and then decide whether to go further.
Here are key events to watch this week:
- US CPI Wednesday
- EIA Crude Oil Inventory Report, Wednesday
- San Francisco Fed President Mary Daly speaks Thursday
- US PPI Initial Jobless Claims Thursday
- University of Michigan Consumer Sentiment, Friday
Some of the main movements in the markets:
Stocks
- The S&P 500 was up 1.9% at 9:31 a.m. New York time.
- The Nasdaq 100 rose 2.8%
- The Dow Jones Industrial Average rose 1.5%
- The Stoxx Europe 600 rose 1.8%
- MSCI World Index rose 1.4%
coins
- The Bloomberg Dollar Spot Index fell 0.1%
- Euro was little changed at $1.0560
- British Pound was little changed at $1.2335
- The Japanese yen rose 0.2% to 130.09 per dollar.
Captivity
- The 10-year Treasury bond yield fell five basis points to 2.98%
- Germany’s 10-year yield fell eight basis points to 1.01%
- Britain’s 10-year yield fell 11 basis points to 1.84%
raw Materials
- West Texas Intermediate crude rose 0.4% to $103.51 a barrel.
- Gold futures rose 0.2% to $1,862.10 an ounce.
–With the assistance of Sunil Jagtiani, John Viljoen, Srinivasan Sivabalan, Vildana Hajric, Isabelle Lee and Lu Wang.