Stocks rebound after rout on eve of Fed decision
BNN Bloomberg
Stocks rallied as oil dropped for a second session while New York manufacturing data came in much weaker than expected, easing fears about more aggressive Federal Reserve tightening that could stifle economic growth.
Stocks rallied as oil dropped for a second session while New York manufacturing data came in much weaker than expected, easing fears about more aggressive Federal Reserve tightening that could stifle economic growth.
Equities rebounded from a three-day slide, with retailers and tech shares leading gains in the S&P 500. The Nasdaq 100 outperformed, following a plunge of more than 20 per cent from a record. West Texas Intermediate crude traded below US$100 a barrel, though its descent slowed after Russian President Vladimir Putin cast doubt on the success of negotiations between Russia and Ukraine. Treasury two-year yields fell a day before the Fed’s policy decision. The yuan climbed on a news report that Saudi Arabia is in active talks with Beijing to price some of its oil sales to the Asian nation in the currency.
Putin said Ukraine’s leadership was not being “serious” about resolving the conflict as a besieged Kyiv prepared to enter an extended curfew from 8 p.m. on Tuesday local time. Russia slapped sanctions on U.S. President Joe Biden and a slew of administration officials, as the U.K. placed new penalties on more than 370 Russians and joined the European Union in banning the export of luxury goods to the country.
Read: Ukraine’s Anti-Tank Missiles Could See Russia Shift War Tactics
Prices paid to U.S. producers rose strongly in February on higher costs of goods, underscoring inflationary pressures that set the stage for the Fed’s first rate increase since 2018 on Wednesday. Still, officials will have to balance curbing higher prices without hampering the economic rebound. A separate report showed New York state manufacturing activity weakened considerably in early March as orders fell and delivery times lengthened.
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