Stocks rise and bond prices rally. The Dow gains 550 points and the 10-Year drops the most in a single day since 2009.
U.S. stocks rose sharply in volatile trading on Wednesday as investors bought up shares following a week of steep losses amid easing concerns about inflation and volatile bond yields. The S&P 500 index climbed 2% to end a six-day losing streak, the Dow Jones Industrial Average rose 1.9% to 29683.74, and bond yields declined. The Nasdaq Composite jumped 2.1%, to close at 11051.64
The market continues to be under pressure as investors focus on inflation and the Fed’s efforts to control it with higher interest rates. The Fed has raised rates five times this year, the most recent being last week. There are more signs pointing to slowing economic growth, including the first monthly decline in house prices in years. In the U.K., where the government last week introduced the country’s biggest tax cuts in decades, investors were shocked and sent the yield (the amount of money you get back from investing) on the 10-year sovereign bond higher, pushing interest rates up further.
Danish authorities are investigating possible sabotage to the Nord Stream pipeline, and they believe that it was committed by Russia. The Nord Stream One and Two pipelines are the major source of natural gas for Europe.
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