Stocks rallied Wednesday as the Dow rose 400 points and the Nasdaq snapped a 7-day slide.

Stocks rose on Wednesday – trying to shake off a three-week slump – as easing rates and oil prices cooled investor concerns about persistently high inflation.

The Dow Jones Industrial Average rose 481 points, or 1.55%. The S&P 500 rose 1.99% and the Nasdaq Composite rose 2.33%, trying to snap a seven-day losing streak.

US Treasury yields fell followed by a jump on Tuesday. Oil prices fell as West Texas Intermediate crude fell below $85 a barrel. The British pound hit its lowest level against the dollar since 1985.

Stocks rallied as Fed Vice President Lael Brainard reaffirmed that the central bank will do what is necessary to control inflation. Many traders decided to focus on this latter point from his speech.

“At some point in the tightening cycle, the risks become bilateral,” Brainard said. “The speed of the tightening cycle and its global nature, as well as the uncertainty surrounding the speed with which the consequences of tighter financial conditions will play out through aggregate demand, create risks associated with greater tightening.”

Higher moves reversed earlier declines into negative territory in futures trading. Stock futures fell later Wall Street Journal article recommended Federal Reserve Chairman Jerome Powell’s commitment to lower inflation has led the central bank to raise rates by 0.75 percent in September, the third consecutive increase at that level.

Markets were hoping the central bank would start offering smaller increases starting in September, but they Now there is an 86% chance of a 0.75 percentage point hike.

On Wednesday, the Federal Reserve issued its summary of current economic conditions Brown book. The report showed that economic activity was little changed and growth outlooks remained weak in many regions across the United States.

Stocks have struggled recently as Treasuries trade at their highest level since June. On top of that, September has historically been a tough month for the market. All eyes are on the S&P 500 at 3,900. Some see the index falling to new lows, while others are optimistic of a year-end rally.

“With stocks back to June and rates on track to rise, further easing of inflation and decisive EU government intervention to tackle the energy crisis could fuel another bearish pressure,” Barclays’ Emmanuel Gao wrote in a note on Wednesday. “Big picture, we think stocks are in a tough spot because of the poor growth-policy tradeoff.”

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