Stocks, bond yields rise after record ECB rate hike, Powell comments

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The Dow, S&P and Nasdaq closed up less than a percent, lifted mainly by banks and healthcare companies, as investors digested remarks from Federal Reserve Chair Jerome Powell that suggested a large interest rate hike later this month

Chicago Fed President Charles Evans also said on Thursday that getting high inflation down is "job one," and to do so the Fed could raise interest rates by another 75 basis points this month.Fed officials are heading into a blackout period before their Sept. 20 to 21 meeting, when they are expected to raise the fed funds rate by another 75 basis points, increasing it to 3.0% to 3.25%. ,

"It's important to remember the lesson we all learned years ago, and that's don't fight the Fed," said Oliver Pursche, senior vice president at Wealthspire Advisors in New York. "And the Fed is telling us that they're laser-focused on inflation." In afternoon New York trading, the dollar rose 0.1% to 143.96 yen , climbing in nine of the last 10 sessions. On Tuesday, it surged to a 24-year peak of 144.99 yen.The yen has been a victim of recent dollar strength, as the Bank of Japan remains the lone dovish central bank.Crude prices edged up about 1% after dropping to a seven-month low in the prior session.

Brent futures rose $1.15, or 1.3%, to settle at $89.15 a barrel, while U.S. West Texas Intermediate crude CLc1 rose $1.60, or 2.0%, to settle at $83.54.Additional Reporting by Marc Jones in London and Stephen Culp and Karen Brettell in New York; Editing by Mark Porter, Richard Chang and Josie Kao

 

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