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(Bloomberg) — As expected, stocks rose and bond yields fell after Jerome Powell reiterated that the Federal Reserve is in no hurry to cut interest rates.
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The S&P 500 index recovered to the 5,100 level with Nvidia rising and Tesla falling. CrowdStrike Holdings jumped about 15% on the bullish outlook. The yield on the 10-year US Treasury note fell 5 basis points to 4.1%. Bitcoin resumed its rise and topped $66,000. Stocks rose after the Bank of Canada said it was still “too early” to consider cutting interest rates.
The Fed president said it would likely be appropriate to start lowering borrowing costs “at some point this year,” but made clear he was not ready to do so yet. That contrasts somewhat with claims from several other officials that cuts are likely to occur “later this year,” said Andrew Hunter of Capital Economics.
“His comments do not change our view that the Fed is likely to begin cutting rates in June,” Hunter added.
Never miss an episode. Follow the Big Take Podcast on iHeart, Apple Podcasts, Spotify, and wherever you go. Read the transcript.
In other economic news, a report known as JOLTS showed the number of U.S. job openings continued to rise in January. Meanwhile, companies added jobs at a slower pace in February, with private sector employment increasing by 140,000 people, although this was lower than expected. The Fed will also release a Beige Book survey of local business people.
Company highlights:
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Abercrombie & Fitch reported better-than-expected fourth-quarter profits, confirming the apparel retailer’s ability to maintain momentum despite economic uncertainty.
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Nordstrom Co. expects earnings to slow this year and similar sales growth as weaker demand at its upscale namesake stores offsets an improved outlook for its off-price rack stores.
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Foot Locker Co. overcame fears of a rebound in consumer spending on sportswear and reported sales that beat Wall Street expectations.
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JD.com Inc. launches $3 billion stock repurchase program, boosts revenue growth by 3.6%, beats expectations as it expands product lineup and lowers prices to target cost-conscious Chinese consumers reported.
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Grifols SA fell after Moody’s Investors Service downgraded the Spanish plasma company’s rating and short seller Gotham City Research raised new questions about the company’s accounting methods.
This week’s main events:
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China trade, foreign exchange reserves, Thursday
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European Central Bank interest rate decision Thursday
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U.S. new jobless claims, trade, Thursday
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President Joe Biden delivers State of the Union address on Thursday
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Federal Reserve Chairman Jerome Powell testifies before the Senate Banking Committee on Thursday
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Cleveland Fed President Loretta Mester speaks Thursday
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Eurozone GDP, Friday
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US nonfarm payrolls, unemployment rate, Friday
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New York Fed President John Williams speaks on Friday
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ECB Executive Board Member Robert Holzmann speaks on Friday
The main movements in the market are:
stock
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As of 10:22 a.m. New York time, the S&P 500 was up 0.5%.
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Nasdaq 100 rose 0.6%
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The Dow Jones Industrial Average rose 0.4%.
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Stoxx European 600 rose 0.4%
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MSCI World Index rose 0.6%
currency
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The Bloomberg Dollar Spot Index fell 0.3%.
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The euro rose 0.3% to $1.0887.
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The British pound rose 0.1% to $1.2722.
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The Japanese yen rose 0.4% to 149.40 yen to the dollar.
cryptocurrency
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Bitcoin rose 4.1% to $65,945.79
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Ether rose 6.9% to $3,767.15
bond
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The 10-year Treasury yield fell 5 basis points to 4.10%.
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German 10-year bond yield remains unchanged at 2.32%
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The UK 10-year bond yield fell by 1 basis point to 4.00%.
merchandise
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West Texas Intermediate crude rose 2.1% to $79.80 per barrel.
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Spot gold rose 0.6% to $2,141.39 an ounce.
This article was produced in partnership with Bloomberg Automation.
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