59691
Wall Street Hits Record, Dollar Climbs After Yellen Remarks
Wall Street Hits Record, Dollar Climbs After Yellen Remarks
  1. World Economy

Wall Street Hits Record, Dollar Climbs After Yellen Remarks

  1. World Economy

Wall Street Hits Record, Dollar Climbs After Yellen Remarks

Financial stocks lifted the S&P 500 to a record closing high for a fourth consecutive session on Tuesday and the dollar strengthened as US Federal Reserve Chair Janet Yellen struck a hawkish tone on the timing of an interest rate hike.
Yellen told the US Senate Banking Committee the central bank will likely need to raise interest rates at an upcoming meeting, although she expressed caution about the considerable economic policy uncertainty under the Trump administration, Reuters reported.
Financial stocks moved higher following her remarks and closed up 1.2% as the best performing sector of the S&P 500. Utilities and real estate, which tend to weaken in a rising rate environment, ended down 0.7% and 0.5%, respectively.
The dollar reversed course after Yellen’s comments and was up 0.3% after touching a three-week high of 101.38 against a basket of major currencies.
Thomson Reuters data shows traders see a 17.7% chance of a 25-basis-point hike in rates at the Fed’s March meeting.
The greenback was initially under pressure following the resignation of President Donald Trump’s national security adviser, Michael Flynn, over revelations he had discussed US sanctions against Moscow with the Russian ambassador to the United States before Trump took office.
Yellen’s hawkish tone dovetailed with recent comments from other Fed officials.
Dallas Fed President Robert Kaplan on Monday argued the Fed should move soon to avoid falling behind the curve, especially as fiscal policy could drive faster growth and inflation. Earlier on Tuesday, Richmond Fed President Jeffrey Lacker said the central bank will likely have to raise interest rates more rapidly than financial markets currently expect.
The Dow Jones Industrial Average rose 92.25 points, or 0.45%, to 20,504.41, the S&P 500 gained 9.33 points, or 0.40%, to 2,337.58 and the Nasdaq Composite added 18.62 points, or 0.32%, to 5,782.57.
Along with the S&P, the Dow notched its fourth straight record, while the Nasdaq closed at a high for a sixth consecutive day. MSCI’s all-country world index edged up 0.08%. Europe’s broad FTSEurofirst 300 index slipped 0.04% to snap a five-session winning streak. Yields on benchmark US 10-year Treasury notes climbed to 2.473%, down 11/32 in price, after hitting a high of 2.502%.

Short URL : https://goo.gl/eiJS60
  1. https://goo.gl/ve6x57
  • https://goo.gl/Z8oycw
  • https://goo.gl/L4ANCW
  • https://goo.gl/LwHbtX
  • https://goo.gl/ZbVgEh

You can also read ...

UN Body Warns EAC Against Trade Deal With EU
A United Nations think-tank has warned the East African...
The politics of Saudization has vexed businesses who are forced to employ Saudi nationals. Some companies simply pay locals to stay at home
The rent-based economy in Saudi Arabia has shown its limits...
No Market Economic Status for China
Director of the White House National Trade Council Peter Navarro...
Moroccan Liberalization Making Progress
Morocco continues to make notable progress in economic...
Core inflation increased by 1.2% in April.  Some of the rise may be due to pricing around Easter, the rate is the highest since the summer of 2013.
Inflation surged and growth continued to accelerate in the...
ASEAN Ready for Trade Pacts
ASEAN is keen to conclude a region-wide trade agreement with its...
The government has imposed restrictions on imports and increased tariffs on more than 300 products.
In green fields near Egypt’s Mediterranean coast, PepsiCo is...
RCB Reduces Key Rate to 9.25%
The Russian Central Bank reduced the key rate by 0.5 percentage...

Add new comment

Read our comment policy before posting your viewpoints

Image CAPTCHA
Enter the characters shown in the image.

Trending

Googleplus