Despite the conflict in the Middle East, stocks have risen as Federal Reserve members express dovish sentiments.
The Dow Jones Industrial Average has increased by 203 points, or 0.6%, while the S&P 500 has risen by 0.7%, and the tech-heavy Nasdaq Composite has jumped by 0.5%. Earlier in the day, all three indexes were trading lower.
The bond market is closed for Columbus Day, but futures tracking the 10-Year yield show a decrease from last week to 4.67%. Rising yields have recently put pressure on stocks, so a decline in yields is seen as a positive sign.
“After raising the target range for the federal funds rate by 525 basis points since early 2022, I believe that the FOMC is now in a position to proceed cautiously in evaluating the extent of any additional policy tightening that may be necessary,” Jefferson told the National Association for Business Economics in Dallas.
Fed futures now indicate a 14.1% probability of a rate hike at the Fed’s November meeting, down from 27.1% recorded on Friday,…
2023-10-09 13:17:07
Original from www.barrons.com