# Stocks jump as Treasury yields ease and oil prices sell off
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2022-09-08
Category: NEWS
Category URL: https://financedigest.com/category/news
Meta Title: Global Stocks Rally on Easing Treasury Yields and Falling
Meta Description: Read the latest update on global stocks as they bounce back post recent losses. Benchmark U.S. Treasury yields ease and oil prices dip, fueling market optimism.
URL: https://financedigest.com/stocks-jump-as-treasury-yields-ease-and-oil-prices-sell-offhtml

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By Caroline Valetkevitch

NEW YORK (Reuters) – Global stocks rallied on Wednesday after recent losses as benchmark U.S. Treasury yields eased from three-month highs and [oil prices](https://www.financedigest.com/oil-ticks-up-as-u-s-inflation-cools-but-prices-set-for-monthly-drop.html "Oil ticks up as U.S. inflation cools, but prices set for monthly drop") fell below $90 a barrel.

The [dollar surged to a 24-year peak](https://www.financedigest.com/dollar-edges-down-from-six-week-peak-swedish-crown-jumps.html "Dollar edges down from six-week peak, Swedish crown jumps") against the yen and a 37-year high versus sterling, but the dollar index =USD was lower on the day.

Brent crude LCOc1 futures touched their lowest [since early February](https://www.financedigest.com/dollar-heads-for-first-weekly-gain-since-february.html "Dollar heads for first weekly gain since February"), falling below levels seen prior to Russia’s invasion of Ukraine. Data showing China’s export growth slowed in August fueled [demand worries](https://www.financedigest.com/oil-falls-on-demand-worry-as-fed-make-or-break-moment-approaches.html "Oil falls on demand worry as Fed ‘make or break moment’ approaches"). (Full Story)

Quincy Krosby, chief [global](https://www.financedigest.com/allianz-trade-wins-global-banking-finance-reviews-best-trade-credit-insurance-company-asia-pacific-2022.html "Allianz Trade wins Global Banking & Finance Review’s Best Trade Credit Insurance Company Asia Pacific 2022") strategist at LPL Financial in Charlotte, North Carolina, said given the oversold conditions of stocks, it did not take much to create a bounce.

[Oil prices fell and the dollar index weakened](https://www.financedigest.com/oil-up-2-as-dollar-weakens-on-small-us-fed-rate-hike.html "Oil up 2% as dollar weakens on small US Fed rate hike"), and “those are two good catalysts,” she said.

Benchmark U.S. [Treasury yields](https://www.financedigest.com/wall-street-drops-treasury-yields-gyrate-on-fed-chairman-powells-remarks.html "Wall Street drops, Treasury yields gyrate on Fed Chairman Powell’s remarks") slipped after earlier hitting three-month highs, with the 10-year note yield US10YT=RR last at 3.28%, ahead of Federal Reserve Chair Jerome Powell’s speech on Thursday. (Full Story)

Concerns that inflation will remain persistently high and keep [driving interest rates higher](https://www.financedigest.com/maserati-aims-at-driving-margins-higher-before-any-spin-off-talk.html "Maserati aims at driving margins higher before any spin-off talk") had lifted yields in recent weeks.

Investors have been anxious for more news from central [banks on the trajectory of global](https://www.financedigest.com/global-shares-jump-but-bank-whack-a-mole-not-over.html "Global shares jump but bank ‘whack-a-mole’ not over") interest rates.

The European [Central Bank](https://www.financedigest.com/stock-pickers-reckon-its-time-to-move-on-from-central-banks.html "Stock pickers reckon it’s time to move on from central banks") is widely expected to raise interest rates sharply when it meets this week, while the U.S. central [bank is expected to raise rates](https://www.financedigest.com/bank-of-england-raises-rates-to-3-5-says-inflation-has-peaked.html "Bank of England raises rates to 3.5%, says inflation has peaked") by another 75 basis points at its Sept. 20 to 21 meeting. (Full Story)

All major S&P 500 sectors rose on the [day apart from energy](https://www.financedigest.com/russian-missiles-hit-30-of-ukraines-energy-infrastructure-in-two-days-minister.html "Russian missiles hit 30% of Ukraine’s energy infrastructure in two days – minister") .SPNY, which fell 1.2% with the slide in [oil prices](https://www.financedigest.com/oil-prices-rebound-after-opec-upgrades-china-demand-outlook.html "Oil prices rebound after OPEC upgrades China demand outlook").

The Dow Jones Industrial Average .DJI rose 435.98 points, or 1.4%, to 31,581.28, the S&P 500 .SPX gained 71.68 points, or 1.83%, to 3,979.87 and the Nasdaq Composite .IXIC added 246.99 points, or 2.14%, to 11,791.90.

The pan-European STOXX 600 index .STOXX lost 0.57% and MSCI’s gauge of stocks [across the globe](https://www.financedigest.com/sales-of-medical-beds-across-the-globe-are-estimated-to-exceed-us-3000-mn-in-revenues-by-2022-end.html "Sales of Medical Beds Across the Globe are Estimated to Exceed US$ 3,000 Mn in Revenues by 2022-end") .MIWD00000PUS gained 1.06%.

U.S. [stocks had been selling off since mid-August after hawkish comments](https://www.financedigest.com/oil-dips-after-fed-comments-us-crude-stock-build.html "Oil dips after Fed comments, US crude stock build") from Powell and signs of an economic slowdown in Europe and China. (Full Story)

Helping the U.S. dollar recently, Japan’s dovish monetary policy and Europe’s [economic problems have contrasted with a relatively stronger](https://www.financedigest.com/oil-slumps-on-economic-data-stronger-u-s-dollar.html "Oil slumps on economic data, stronger U.S. dollar") U.S. economy and a [hawkish Fed](https://www.financedigest.com/stocks-sag-as-hawkish-fed-cools-china-rally-awaits-us-jobs-data.html "Stocks sag as hawkish Fed cools China rally; awaits US jobs data"). (Full Story)

The U.S. currency soared as high as 144.99 yen JPY=EBS, hitting the level for the first [time since](https://www.financedigest.com/soccer-arsenal-reach-womens-champions-league-semis-for-first-time-since-2013.html "Soccer-Arsenal reach Women’s Champions League semis for first time since 2013") August 1998. It is now within a large leap of its 1998 high of 147.43. The [dollar was last up 0.9% at 144.09 yen](https://www.financedigest.com/dollar-hits-20-yr-high-as-yen-tumbles-on-dovish-bank-of-japan.html "Dollar hits 20-yr high as yen tumbles on dovish Bank of Japan").

Against sterling GBP=D3, the greenback hit $1.1407, the lowest since 1985 and last down 0.1% at $1.1509.

Liz Truss, who took over as Britain’s prime minister on Tuesday, vowed immediate action to help the economy, which [faces double-digit inflation and an expected](https://www.financedigest.com/wave-of-lawsuits-over-ftx-expected-but-investors-will-face-legal-hurdles.html "‘Wave’ of lawsuits over FTX expected, but investors will face legal hurdles") lengthy recession. (Full Story)

The [euro EUR=EBS fell below 99 cents after dipping as low](https://www.financedigest.com/analysis-euros-20-year-low-leaves-ecb-facing-costly-choices.html "Analysis-Euro’s 20-year low leaves ECB facing costly choices") as $0.9864 on Tuesday, its lowest since October 2002.

On Wednesday, Europe’s single currency was last up 0.8% at US$0.9985, and the U.S. dollar index, which measures the greenback against a [basket of currencies](https://www.financedigest.com/the-yuan-makes-its-official-entry-into-rawbanks-currency-basket.html "The yuan makes its official entry into RAWBANK’s currency basket"), was last down 0.7%.

In the energy market, Brent crude LCOc1 futures settled down $4.83 at $88 a barrel, [falling below $90 a barrel for the first since](https://www.financedigest.com/biggest-uk-house-price-fall-recorded-since-financial-crisis.html "Biggest UK house price fall recorded since financial crisis") Feb. 8. U.S. West Texas Intermediate crude CLc1 settled down $4.94, or 5.7%, to $81.94, its lowest since January. (Full Story)

Spot gold XAU= added 0.9% to $1,716.70 an ounce.

(Additional reporting by Karen Brettell and Gertrude Chavez-Dreyfuss in New [York and Elizabeth Howcroft in London](https://www.financedigest.com/new-york-catches-up-with-london-to-head-citys-global-centres-survey.html "New York catches up with London to head City’s global centres survey"), Editing by Angus MacSwan, William Maclean, Josie Kao and Deepa Babington)


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