The stocks in markets worldwide have been making appreciable gains right now. In fact, they could certainly be set for their best week for the whole year this Friday. Bonds have gone down, and the dollar has finally taken a step back. The cause of all this is that investors are ecstatic about the signs coming from the Fed, indicating a rate hike pause.
In terms of other data points, American job data coming out today will have a major effect. 10-year Treasury yields are down 0.2% after Wednesday’s meeting as Jerome Powell seemed to have a positive outlook.
The stock market outlook will be similarly optimistic. When it comes to stock indices, we also see a positive story. At first, looking at the US market, it may not seem so optimistic. S&P 500 futures dropped by 0.1%, mainly due to Apple, the largest contributor, falling by 3.0%. Apple’s sales were lower than investors expected, leading to this dip.
European Markets Surge While US Stocks Await Momentum
However, European futures are up 0.4%, and, more importantly, worldwide stocks are up by 4.3%. It seems there are many trending stocks everywhere. This is remarkable growth for this week, and it is the best week for worldwide markets since November last year.
Analysts state that this improvement is due to markets feeling certain that we have seen the peak of interest rates in the US. From now on, investors are expecting things to calm down, which could boost the stocks across the world. However, the Fed chair did say that bond yields may still rise in the short term and that they would have to stay that way.
Still, investors are waiting for these yields to fall and remain confident that they will eventually fall within reasonable ranges.
In other markets, we also see rate hikes slowing down. The Bank of England, for example, has also announced a pause yet is not expecting to make rate cuts any time soon either.
