USA stocks climbed Friday morning after three days of losses.
“Most Federal Open Market Committee participants, including myself, now anticipate that achieving these conditions will likely entail an initial increase in the federal funds rate later this year, followed by a gradual pace of tightening thereafter”, Yellen told the students and local residents at the University of Massachusetts.
The dollar jumped and USA interest rate futures price briefly dropped after Federal Reserve Chair Janet Yellen suggested the central bank is still on track to raise interest rates later this year. The Dow Jones industrial average gained 246 points, or 1.5 percent, to 16,447.
In the meantime, to the Dollars 1,146.15, an ounce by 0343GMT, the gold spit recorded a fall of 0.7 percent.
Nike (NKE) paced blue-chip gains, up 9 percent after reporting results that easily beat analysts’ estimates.
Separately, the U.S. Commerce Department said that durable goods orders decreased by 2.0% last month, matching forecasts, while core durable goods orders, which exclude volatile transportation items, were flat, compared to expectations for an increase of 0.1%. Growth was supported by gains in construction and consumer spending.
Insana said the USA economy looks fine, but the global economy doesn’t. Since then, the S&P had fallen about 3 percent through Thursday’s close.
“I think the market took it as positive”, Ian Nakamoto, director of research at 3Macs, said in relation to Yellen’s comments.
Stephen Weiss, founder and managing partner of Short Hills Capital Partners LLC, said Yellen’s speech was “powerful” and made it clear that the Fed is going to raise rates this year. Bond prices and yields move inversely.
European markets rebounded Friday, ahead of the announcement of a new CEO at scandal-hit Volkswagen. This was revised up from the 3.7 percent growth that was reported last month.
In afternoon trading, 10-year Treasuries notes were down 12/32 in price for a yield of 2.164 percent, up 4 basis points from late on Thursday.
“Although the U.S.is continuing to improve, outside the U.S.it’s just scary”.
The euro was last down 0.35 percent against the dollar at $1.11910. Brent Crude, a benchmark for many worldwide oils, fell 11 cents to $48.75 a barrel in London.