NEW YORK, March 3 — US stocks rallied yesterday, as Treasury yields pulled back from earlier highs following comments from Atlanta Federal Reserve President Raphael Bostic about his favoured path of interest rate hikes for the central bank.
The two-year US Treasury yield, which typically moves in step with interest rate expectations, was down 0.4 basis points at 4.885 per cent after earlier touching a fresh 15-year high at 4.944 per cent. The Dow Jones Industrial Average rose 341.73 points, or 1.05 per cent, to 33,003.57, the S&P 500 gained 29.96 points, or 0.76 per cent, to 3,981.35 and the Nasdaq Composite added 83.50 points, or 0.73 per cent, to 11,462.98.
Monthly payrolls and consumer prices data in the coming days will offer investors more clues on how aggressive the central bank may be heading into the Fed’s March 21-22 meeting, where it is currently expected to raise rates by 25 basis points. Tesla Inc fell 5.85 per cent after Chief Executive Elon Musk and team’s four-hour presentation failed to impress investors with few details on its plan to unveil an affordable electric vehicle.