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5 Oct 2015
US stocks rise as bad news is good news again
FXStreet (Mumbai) - The US equities advanced on Monday as investors cheered the drop in the December Fed rate hike bets leading to a risk-on rally across the global markets.
At the time of writing, the Dow Jones Industrial Average (DJIA) was up 194 points. The S&P 500 was up 26 points and the Nasdaq was up 44 points. Major gainers include General Electric (up 3%) and Twitter (up 3%).
Bad news is good news
As per CME Fed watch data, the probability of a rate hike in October is now just 8%, while that in December is 28.5%. The 2-year yield, which also mimics rate hike expectations, declined from 0.68% to the current level of 0.574%.
Markets have reacted positively to the drop in the Fed rate hike bets. The equity markets across the globe rallied, while the funding currencies declined and the treasury yields rose.
At the time of writing, the Dow Jones Industrial Average (DJIA) was up 194 points. The S&P 500 was up 26 points and the Nasdaq was up 44 points. Major gainers include General Electric (up 3%) and Twitter (up 3%).
Bad news is good news
As per CME Fed watch data, the probability of a rate hike in October is now just 8%, while that in December is 28.5%. The 2-year yield, which also mimics rate hike expectations, declined from 0.68% to the current level of 0.574%.
Markets have reacted positively to the drop in the Fed rate hike bets. The equity markets across the globe rallied, while the funding currencies declined and the treasury yields rose.