© Reuters.
Investing.com – The US dollar retreated from last Friday’s seven-week high of 105.32, to drop today to below 104.615 levels, after mixed data on durable goods orders revealed a contraction of -4.50 on a monthly basis for major commodities. This spurred risk appetite to rise, and the stock market rose after a violent decline last week.
It now rises by 0.84% to 11489.65 points, while it succeeded in adding 125 points to record 32942.18, an increase of 0.38% in today’s trading. It rose by 0.53%, recording 3991.41 now, and is once again close to breaking the four thousand point levels.
Shares rebounded, with Tesla (NASDAQ: ) rising 4.1% after the electric car maker said its Brandenburg plant near Berlin was producing 4,000 cars a week, three weeks ahead of schedule according to the latest production plan reviewed by Reuters.
Stock and bond market
“Some relatively large losses last week are the starting point,” said Art Hogan, chief market strategist at P Riley Wealth.
He continued, “Also, when you look at the drivers last week, better-than-expected economic data sent Treasury yields higher, and going into the new week, we see yields softening a bit.”
The two-year yield, which is most sensitive to short-term interest rate expectations, fell after touching a four-month high earlier.
Traders raised their bets on a 50 basis point hike in March after last week’s data showed that the personal consumption expenditures index, the measure by which the Fed measures its 2% inflation target, rose 5.4% last month.
Fed fund futures show traders are pricing in a third 25 basis point rise this year and see rates peaking at 5.50% by September.
Important announcement from Morgan Stanley (NYSE:)..low interest
Morgan Stanley expected the Fed to cut interest rates by March 2024, far from its earlier forecast that it would cut them in December 2023, saying it now expects a “slower pace” of rate cuts.
Federal statements
Meanwhile, Fed Governor Philip Jefferson said he “has no faith in the illusion” that inflation will quickly fall back to target and remains committed to keeping monetary policy tightening in place for as long as necessary to make sure price stability is restored.
Data showed earlier that new orders for major US-made capital goods increased more than expected in January while shipments of so-called basic goods rebounded, indicating that business spending on equipment picked up at the start of the first quarter.
Stock highlights
Seagen stock rose 10.5% after The Wall Street Journal reported that Pfizer (NYSE:) was in early talks to acquire the biotech company. Pfizer shares fell 1.1 percent, on the other hand.
US rail operator Union Pacific (NYSE:) UNP jumped 9.5% after CEO Lance Fritz said he would step down, a move that followed calls from hedge fund Soroban Capital Partners for his ouster.
Fisker Inc rose 29% after the electric vehicle maker reported increased orders for its Ocean SUV and maintained its production forecast for the year.
According to Reuters, the number of gainers outnumbered the losers by 2.33 to 1 on the New York Stock Exchange and 1.75 to 1 on the Nasdaq.
The S&P posted three 52-week highs and three new lows, while the Nasdaq posted 51 new highs and 64 new lows.
A look at the movement of the S&P 500
