STOCK EXCHANGE: Wall Street opens up – Central banks are expected to put the brakes on interest rate hikes

The stock market was broadly on a strong rise on Tuesday, and the stock exchanges on Wall Street also opened brightly in the positive.

At the opening of the main indices, the S&P 500 was up 1.7 percent, the Nasdaq was up 2.3 percent, and the Dow Jones was up 1.4 percent.

At the top of the stock exchange yesterday, it collapsed drastically Tesla was up four percent at the opening on Tuesday. Growth and technology companies and oil companies were generally in a strong mood.

There is no clear single reason behind the global market euphoria. The market is familiar with the possible development of inflation and central banks’ monetary policy, as well as the threat of a recession.

The weakened industrial purchasing managers’ indexes in the United States have caused investors to speculate whether the central bank, the Federal Reserve (Fed), would have to bend earlier than expected in its interest rate hikes to avoid a sudden economic shutdown. In recent months, central bankers’ communication has been consistently hawkish and emphasizing taming inflation.

The Australian central bank recently raised interest rates less than expected.

“Even though the guidelines of the Reserve Bank of Australia do not indicate a decrease in interest rates, it enables steps back from extreme hawkishness. It points to a possible increase in the interest rate market and can also support the stock market if other central banks make similar moves”, SPI Asset Managementin Stephen Innes wrote in his market commentary, according to Bloomberg.

A decrease in market interest rates increases the price of bonds on the market.

The market is now pricing in the Fed raising interest rates by a total of 125 basis points by March. After the last interest rate meeting, the expectation was still clearly higher, 165 basis points.

By Editor

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