On Wednesday, all three key indices of Wall St. had eked out marginal gains as latest remarks from the US Fed officials seemed to have cooled off inflation concerns up to some extent and kept US Treasury bond notes in check.
In point of fact, in the day’s modest gains in the Wall St. were almost entirely prodded by the remarks from Fed policymakers, who again had downplayed the impacts of a likely inflation-surge in a near-term outlook, though US Fed Vice President Richard Clarida was quoted saying yesterday that the US Central Bank would not hesitate to implement its fiscal tools and taper off supports for the economy in any case of a prolonged period of rise in inflations.
Aside from that, amid a barrage of dovish remarks from the US Fed policymakers, US Treasury bond notes remained subdued on the day with 10-year US Treasury Yields hovering shy of 1.6 per cent, which helped investors' morale to cash in on so-called tech-related growth stocks.
Wall St. edges higher as US Treasury bond yields hover below 1.6%
Citing statistics, in the day’s Wall St. wind-down, benchmark S&P 500 added 0.19 per cent to 4,195.97, mostly sailing on the back of a rise in mega-cap tech stocks such as Tesla Inc and Amazon.com Inc., and trade-sensitive Dow edged 0.01 per cent higher to 34,314.66, while tech-heavy Nasdaq surged 0.59 per cent to 13,738.11, leading the charges in the day’s US money markets.
Nonetheless, addressing to a relatively subdued US bond market, a co-manager of trading at Themis Trading in Chatham, New Jersey, Joe Saluzzi said, “The main thing I am looking at always is still the bond yields, that seems to be the driver.
If we are still below 1.6%, that looks pretty good to me. There is going to be some inflation but then it comes back to whether it is temporary or not. Until I see those bond yields pick up significantly, I think you are kind of buying right now. ”