U.S. stocks are making strong gains to end the week, after investors rebounded following Powell's hawkish comments on Wednesday. Although the Fed's chief banker hinted that an uncertain economic backdrop in the face of inflationary pressures could lead to a slower pace of interest rate cuts, for the stock market itself, the overall direction of monetary changes held the same, namely a gradual easing of financial conditions at home. However, a downward correction seemed warranted, in view of the fact that global indexes had been hitting new historic peaks for days.
Today, the central bank's preferred measure of inflation for November turned out to be weak and did not point to major inflation problems. The core PCE index, which excludes food and energy prices, rose 0.1% from October and 2.8% from a year earlier. The monthly increase was the slowest since May of this year.
A positive rebound is also seen in U.S. bonds, which saw strong discounts after the Fed conference. Yields on 10-year bonds approached the peaks at the end of May this year (i.e., levels before the start of the interest rate cut cycle). Currently, yields are at approx. 4,49%.
US100 (D1)
The price of the Nasdaq 100 index contract is trading on a strong rebound, gaining more than 1.6%. The price stopped near the exponential moving average for the last 50 sessions (EMA50, the dark blue line on the chart) at around 20100 points. At the same time, this level marked the lower limit of the uptrend channel, which the contract has been in since September 2024.
Source: xStation
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