Wall Street turns green as bond yields fall

The three main stock indices of USA rose strongly on Friday and marked important weekly movements. Equities gained strength due to a drop in bond yields, due to bets on lower rate hikes.

The index Dow Jones, made up of the shares of 30 industrial giants, rose 2.47% to 31,082.56 points. The Extended Reference S&P 500, of 500 components, registered an advance of 2.37% to 3,752.75 points. the technological Nasdaq it rose 2.31% to 10,859.72.

Yield rates on US Treasury bonds fell this Friday after a press release suggested that the Federal Reserve it will likely debate in two weeks whether to plan a smaller rate hike for December.

San Francisco Fed President Mary Daly joined the discussion by saying it’s time to start talking about slowing the pace of rising borrowing costs and doing so so as not to send the economy into a ” unforced deceleration

In the same vein, the president of the Chicago Federal Reserve, Charles Evans, stated that the US central bank should place its monetary policy “a little above” 4.5% at the beginning of 2023 and maintain it. It currently stands at 3.5 percent.

Large tech and mega-cap stocks, sensitive to the higher rate environment, stood out with strong moves. The titles of Apple Inc rose 2.71%, while Microsoft Corp gained 2.60%, and Tesla3.45 percent.

During the week, the three US indices accumulated gains, led by the Nasdaq, with 5.22 percent. He was followed by S&P 500amid a so far positive reporting season, at 3.65%, and the Dow Joneswith 2.49 percent.

jose.rivera@eleconomista.mx