Wall Street Close: Dow jumps the most in three months as bulls battle the Fed

  • US equities post notable gains as markets overcome Fed’s bearish rhetoric amid mixed signals from the latest Fedspeak.
  • Crypto-linked firms lose on China’s crackdown, Microsoft reached intraday record high.
  • US Treasury yields rebound from the four-month low, Crude oil refresh multi-month top.
  • Fed Chair Powell’s testimony poised to strengthen recovery moves.

US shares rally on Monday, led by the Dow Jones Industrial Average (DJI), as recovery hopes regain the market’s attention amid Fed policymakers’ sustained efforts to tame the tapering woes. Markets cheer recovery in the US Treasury yields from the lowest since February, as well as upbeat data and a run-up in oil prices, to portray an upbeat start of the week.

Fed Chairman Jerome Powell’s prepared remarks for Tuesday Testimony keep terming the inflation risk as transitory, causing no major challenges to the present monetary policies. The Fed Boss also flaunts the availability of tools with the US central bank if needed to use. Alternatively, New York Fed President John C. Williams takes multiple turns in his latest speech that recently mentioned that Fed is talking about talking tapering. Dallas Fed President Robert Kaplan was on the same line while favoring “taking the foot off the accelerator sooner rather than later.” Furthermore, St. Louis Fed President James Bullard sounded a bit calmer while saying that the low interest rates and low inflation rate era are not ending any time soon.

Additionally, the upbeat Chicago Fed National Activity Index, from downwardly revised -0.09 to +0.29 in May, joins WTI’s fresh high since October 2018 to keep markets optimistic.

Amid these plays, DJI marks the heaviest jump since early March, up 1.76% or 586.39 points, to 33,876.97 whereas S&P 500 Futures came in second while rising 58.34 points, or 1.40%, to 4,224.79. It’s worth noting that technology shares were the laggards, weigh on the Nasdaq. That said, the tech-heavy index posts 111.10 points of a rise, or 0.79% upside, to end Monday’s North American trading session around 14,141.

It’s worth noting that a jump in the US Treasury yields and drawdown in Cryptocurrencies, due to China’s crackdown on mining these volatile e-currencies, weighed on the technology shares but Microsoft posted the record intraday top.

Shares of RIOT Blockchain and Coinbase Global dropped while Moderna shares benefited from the news of adding two new production lines. MicroStrategy lost nearly 10% as the firm added cryptocurrencies to its holdings despite the latest fall.

Having witnessed an upbeat start to the week, investors may wait for Fed Chair Powell’s testimony to reconfirm his initial remarks suggesting no immediate challenges to the easy money policies. Also likely to entertain the markets could be the updates on US President Joe Biden’s infrastructure spending plan as well as second-tier US data.


Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.

If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.

FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.

The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.

Feed news

Latest Forex News

Latest Forex News

Editors’ Picks

EUR/USD recoups 1.1800 mark amid USD weakness

EUR/USD prints minor gains on Tuesday’s morning Asian session. The pair opened higher and moved in a narrow trade band with 15 pips movement. The Euro continues to trade in a range bound manner for the past two weeks.


GBP/USD edges higher past 1.3800 as covid optimism battles Brexit woes

GBP/USD seesaws around 1.3820, following the heaviest daily run-up in a week, amid Tuesday’s Asian session. The cable pair benefited from the latest reduction in the coronavirus numbers at home, as well as the broad softening of the US dollar, the previous day.


EUR/USD recoups 1.1800 mark amid USD weakness

EUR/USD prints minor gains on Tuesday’s morning Asian session. The pair opened higher and moved in a narrow trade band with 15 pips movement. The Euro continues to trade in a range bound manner for the past two weeks.


SafeMoon price nears lift-off, as SAFEMOON possesses the conditions for a big move

Safemoon price has been coiling within a descending triangle pattern since the May crash, highlighted by no sustainable rallies and continuous support along the May 19 low of $0.00000261. The downward trajectory has kept SAFEMOON investors on the defensive.

Read more

FX: 10 things to watch this week

Taking a look at the economic calendar, it is set to be a busy week for the forex market. There’s a central bank rate decision, GDP, inflation and employment reports scheduled for release. A number of big tech companies have ...

Read more