US stocks rebounded on Thursday from the previous day’s sell-off that was fueled by a hawkish outlook from the Federal Reserve on its path for interest rates.
The Dow Jones Industrial Average (^DJI) the S&P 500 (^GSPC) and tech-heavy Nasdaq Composite (^IXIC) were all up about 0.3 per cent.
The 10-year Treasury yield (^TNX) continued its trek higher on Thursday, rising roughly nine points to hit 4.58 per cent for the first time since May.
Markets are bouncing back after a harsh reaction the day before, prompted by the Fed scaling back the number of rate cuts it expects next year to two, and Chair Jerome Powell said even Wednesday’s decision — cutting rates by a quarter point — was a “closer call.”
Markets interpreted the Fed’s moves as a “hawkish cut” and reacted accordingly, sending the S&P 500 and Nasdaq to their worst days since the summer.
Meanwhile, the bluechip Dow is in the midst of its longest losing streak in 50 years and looking to break out of that funk on Thursday.
The Dow is still up over 12 per cent this year. On the economic front, the third estimate for third quarter US GDP showed the economy grew at annualised rate of 3.1 per cent, above the previous reading of 2.8 per cent.
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