US stocks rallied overnight in a volatile trading session following comments from Fed Chairman Powell regarding how long the fight to tame inflation may take. The Aussie dollar and Yen both appreciated after interest rate announcements and strong Japanese wage data, causing a decline in the US Dollar Index. US treasuries edged higher, and more than half of the companies listed on the S&P500 have now reported with ~70% beating expectations. Tech giants rallied Google +4.61%, Meta +2.99%, and Microsoft up +4.2% and Bed Bath & Beyond plummeted 45.73% after seeking a $1bn raise to avoid bankruptcy.
The Dow Jones was up 266 points (+0.78%). At best it was up 349 points, and at worst it was down 257 points. The NASDAQ rose 1.9%, and the S&P 500 finished up 1.29%. In Europe, Stoxx 50 +0.1%, UK FTSE +0.4%, France's CAC -0.1%, German DAX -0.2%. SPI Futures are up 34 points (+0.46%) this morning as US optimism spills over.
Copper prices rose 0.7%, as the pause in the dollar rally and stabilization in global equities pulled prices from a four-week low. Doubt still remains as Chinese demand has failed to increase following the Lunar New Year holiday period. Gold prices rose 0.2%, due to a slight pullback in the dollar and reactions to US Fed Chair Powell's comments. Other metals are mostly up, Zinc +2.85%, Aluminium +0.1%, Nickel +0.7%, Lead +0.7%, and Tin +1.5%. Oil prices jumped overnight WTI up 4.13% and Brent up 3.18%, due to supply shortage concerns and a positive outlook for demand recovery. Ceyhan port in Turkey will be closed until Wednesday after the earthquakes, while Saudi Arabia raised prices for Asian markets, indicating higher demand. Bitcoin up 0.95% overnight.
Catch up on all the latest with Henry Jennings on today’s Pre-Market Podcast.
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