Global market update: Wall Street rises as US Fed weighs inflation risk

livemint.com:

Global market update: Following US Fed Chairman Jerome Powell's balanced speech at Jackson Hole Symposium, US stock market ended green on Friday. Dow Jones gained 0.73 per cent, tech index Nasdaq surged 0.94 per cent whereas S&P 500 index finished 0.67 per cent higher.

These Wall Street gains lifted the morale of global stock market, and the MSCI All Country stock index edged 0.12 per cent higher. US bond investors dialled back their bets of a rate hike in November and December following Powell's remarks, though Treasury yields traded near break-even by late morning.

The yield on 10-year Treasury notes was steady at 4.2314 per cent and the two-year yield, which reflects interest rate expectations, rose to 5.0735 per cent. The US dollar index — which measures the currency against a basket of six developed-market peers, including the euro — also gave up earlier gains to stand unchanged, after jumping as much as 0.35 per cent to 104.44, a level last seen in early June.

"USD gains have moderated through European trade and the USD has lost minor ground against some high beta currencies as equity markets have strengthened over the session," said Shaun Osborne, chief FX strategist at Scotiabank. Finding hope for both bulls and bears in US Fed Chairman Jerome Powell's speech at Jackson Hole meeting, David Sadkin, President at Bel Air Investment Advisors said, "There was a little something for everybody.