cloudyn.png
Thursday February 2nd, 2023 2:33AM

Wall Street futures rise on Fed Chair comments

By The Associated Press
Related Articles
  Contact Editor

NEW YORK (AP) — Wall Street is pointing higher before the opening bell a day after comments from the U.S. Federal Reserve chairman indicated that interest rate increases will likely be within expectations.

Futures for the Dow Jones Industrial Average and the S&P 500 climbed 0.7%, putting them on track to break free after three consecutive weeks of losses.

Fed Chair Jerome Powell on Thursday reaffirmed the central bank’s commitment to keep rates high as long as necessary to get inflation under control. Some market observers remain skeptical.

“Given the tremendous challenges ahead on the energy front, the war front, and with broad-based inflation already impacting people’s lives, it might be wiser to maintain rates at slightly stimulatory levels to help offset the general economic pain rather than adding to it,” said Clifford Bennett, chief economist at ACY Securities.

Stocks have lost ground in recent weeks after the Federal Reserve indicated it will continue raising interest rates to bring down the highest inflation in decades. The interest rate policies of the Fed and other central banks have a powerful influence on stock and bond markets.

Also Thursday, the European Central Bank made its largest-ever rate increase to fight inflation. The move is in line with steps taken by the U.S. Federal Reserve and other central banks.

In Europe at midday, France’s CAC 40 gained 1.5%, while Germany’s DAX picked up 1.3% and Britain’s FTSE 100 rose 1.5%.

Japan’s benchmark Nikkei 225 rose 0.5% to finish at 28,214.75. Australia’s S&P/ASX 200 added 0.7% to 6,894.20. Hong Kong’s Hang Seng jumped 2.8% to 19,389.03, while the Shanghai Composite added 0.8% to 3,262.05. Trading was closed in South Korea for a holiday.

“Ongoing recovery in the risk environment could provide a positive backdrop for the Asia session to end the week, although Chinese equities still seem to be finding some difficulty in tapping on the improved environment for some relief,” said Yeap Jun Rong, market strategist at IG in Singapore.

China has been releasing a slew of economic data, with more expected next week. Interest is high because of how China’s “zero-COVID” policy has impacted economic activity in the world’s second-largest economy.

On the same day the European Central Bank delivered its big rate increase, Powell told a conference on monetary policy hosted by the Cato Institute, a think tank that promotes libertarian ideas, that the Fed would keep rates high “until the job is done” in getting inflation back down to its 2% goal.

“There is a record of failed attempts to get inflation under control, which only raises the ultimate costs to society,” Powell said.

The Fed has already raised rates four times this year and markets expect it to deliver another jumbo-sized increase of three-quarters of a percentage point at its next meeting in two weeks.

Powell “sounded very resolute in the (Fed’s) mission to squelch inflation, and as a result probably gave more credence to the possibility of a 75-basis point hike at the September meeting,” said Sam Stovall, chief investment strategist at CFRA.

“But once investors realized that he wasn’t really saying anything different than what he had said before, the markets swung back,” he said.

Shares in DocuSign jumped about 16% in premarket trading after the electronic signature company reported strong second-quarter sales and raised it subscription forecast.

In energy trading, benchmark U.S. crude rose $1.62 to $85.16 a barrel. Brent crude, the international standard, added $1.76 to $90.91 a barrel.

In currency trading, the U.S. dollar fell to 142.37 yen from 144.09 yen. The euro cost $1.0056, up from $1.0002.

___

  • Associated Categories: Associated Press (AP), AP Business, AP Business - Economy, AP Business - Financial Markets, AP Business - Industries, AP Business - Financial Services
© Copyright 2023 AccessWDUN.com
All rights reserved. This material may not be published, broadcast, rewritten, or redistributed without permission.
Britain mourns Queen Elizabeth as Charles becomes king
Bells have tolled around Britain and mourners are flocking to palace gates to honor Queen Elizabeth II as the country prepared for a new age under a new king
8:37AM ( 23 minutes ago )
Wall Street futures rise on Fed Chair comments
Wall Street was poised for gains at the market open on Friday, a day after comments from the U.S. Federal Reserve chairman assured markets that interest rate increases will likely be within expectations
8:36AM ( 23 minutes ago )
Ukrainian nuke plant operating tenuously as war persists
Ukraine’s state nuclear energy operator says Europe’s largest nuclear power plant, caught in the Ukraine-Russia war, is operating in emergency mode with elevated risk
8:34AM ( 25 minutes ago )
Associated Press (AP)
Biden to tell Ohioans his policies will revive manufacturing
President Joe Biden wants to put the spotlight on a rare bipartisan down payment on U.S. manufacturing
6:00AM ( 2 hours ago )
EU nations seek joint approach to contain energy prices
The European Union is intensifying its mission to shield the population from dramatically increasing energy prices that threaten to plunge millions into cold and poverty over the winter as tensions mount with Russia over the war in Ukraine
5:59AM ( 3 hours ago )
Global shares higher on Wall Street rise, Fed Chair comments
Global stock benchmarks are rising, as comments from the U.S. Federal Reserve chairman assured markets that interest rate increases will likely be within expectations
4:25AM ( 4 hours ago )
AP Business
UK to cap energy prices, end fracking ban to ease crisis
British Prime Minister Liz Truss says her Conservative government will cap domestic energy prices for homes and businesses to ease the cost-of-living crisis
5:23PM ( 15 hours ago )
As deadline looms, railroads say strike would cost $2B a day
The major freight railroads say in a new report designed to put pressure on unions and Congress that a strike would cost the economy more than $2 billion a day and disrupt deliveries of all kinds of goods and passenger traffic nationwide if it happens after a key deadline passes next Friday without a contract agreement
4:17PM ( 16 hours ago )
Yellen pushes Biden economic plans in battleground Michigan
Treasury Secretary Janet Yellen has pressed the case for Democratic economic policies during a visit to Ford’s Rouge electric vehicle assembly plant in election-year battleground Michigan
3:28PM ( 17 hours ago )
AP Business - Economy
European Central Bank makes largest-ever interest rate hike
The European Central Bank has made its largest-ever interest rate increase to combat record inflation that is squeezing consumers and pushing the 19 countries that use the euro currency toward recession
11:21AM ( 21 hours ago )
Long-term mortgage rates now at highest point since 2008
Average long-term U.S. mortgage rates jumped again this week to their highest level in almost 14 years, certain to keep even more potential buyers out of a housing market that’s cooled considerably since the Federal Reserve began jacking up its benchmark borrowing rate
10:27AM ( 22 hours ago )
Stocks open lower on Wall Street but cling to weekly gains
Stocks are opening lower on Wall Street, knocking out some of the gains from a day earlier but keeping the market on track to break a three-week losing streak
9:45AM ( 23 hours ago )
AP Business - Financial Markets
Judge approves $2.46 billion Boy Scouts reorganization plan
A Delaware bankruptcy judge has approved a $2.46 billion reorganization plan proposed by the Boy Scouts of America
6:56PM ( 14 hours ago )
Regulators try to stop unlawful nursing home debt collection
A federal report says nursing homes and debt collectors are flouting a law that prohibits them from requiring friends and family of care home residents to be responsible for costs of the facilities
5:21PM ( 15 hours ago )
The queen's sporting fascination was racing: 'I love horses'
Horse racing was Queen Elizabeth II's big sporting love
3:21PM ( 17 hours ago )
AP Business - Industries
Stocks charge higher on Wall Street, erasing weekly losses
Stocks ended broadly higher on Wall Street, placing the market on pace to break a 3-week losing streak
4:48PM ( 1 day ago )
US stocks push higher on Wall Street in afternoon trading
Stocks rose in afternoon trading on Wall Street Wednesday, placing the market on pace to break a 3-week losing streak
2:45PM ( 1 day ago )
Stock indexes push higher on Wall Street in midday trading
Stocks rose on Wall Street and erased weekly losses for major indexes as traders try to gauge whether the Federal Reserve will succeed in its mission to get inflation under control
11:48AM ( 1 day ago )
AP Business - Financial Services
Britain mourns Queen Elizabeth as Charles becomes king
Bells have tolled around Britain and mourners are flocking to palace gates to honor Queen Elizabeth II as the country prepared for a new age under a new king
8:37AM ( 23 minutes ago )
Ukrainian nuke plant operating tenuously as war persists
Ukraine’s state nuclear energy operator says Europe’s largest nuclear power plant, caught in the Ukraine-Russia war, is operating in emergency mode with elevated risk
8:34AM ( 25 minutes ago )
Live updates: Queen Elizabeth II dies, Charles becomes king
British prime ministers who served during the reign of Queen Elizabeth II are sharing personal tributes to the late monarch
8:18AM ( 42 minutes ago )
Jailed Kremlin critic: Government has ‘failed to shut me up’
Russian opposition politician Ilya Yashin may be in jail, but he refuses to be silenced
7:06AM ( 1 hour ago )
UN chief asks world to 'massively' help flood-hit Pakistan
U.N. Secretary-General Antonio Guterres has appealed to the world for massive help for cash-strapped Pakistan after arriving in the country Friday to see the climate-induced devastation from months of deadly floods
7:04AM ( 1 hour ago )