WASHINGTON, June 22 ― US stocks were higher yesterday and global stocks advanced in choppy trade after hitting a four-week low earlier in the session, with investors still digesting last week's surprise hawkish shift by the US Federal Reserve.
The Dow Jones Industrial Average rose 1.45 per cent, the S&P 500 gained 1 per cent and the Nasdaq Composite added 0.2 per cent by 10.31am EDT . “The situation in reality is actually pretty good ― the Fed is stabilising inflation,” said Sebastien Galy, senior macro strategist at Nordea Asset Management in Luxembourg. “Cyclical sectors may have overshot the market in the short term and so you may have a bit of pressure on the sector.”MSCI's All Country World Index, which tracks shares across 49 countries, was up 0.5 per cent after hitting its lowest since May 24.
St. Louis Fed President James Bullard further fueled the sell-off on Friday by saying the shift toward faster policy tightening was a “natural” response to economic growth and particularly inflation moving quicker than anticipated as the country reopens from the coronavirus pandemic. Several Fed officials have speaking duties this week, including Chair Jerome Powell, who testifies before Congress today. European Central Bank President Christine Lagarde speaks before the European Parliament yesterday.
A stronger greenback has pressured cryptocurrencies, too, with bitcoin falling 7.7 per cent, while smaller rival ether lost 11 per cent.