US stocks continue to rise after the early signs of Powell's statement that the idea of reducing interest rates is not far. On the trade front with Mexico, the authorities said they would do their best to avoid new tariffs from the Trump Administration.
At the end of the European session, the S&P500 is up 1%, recovering from the "hemorrhage" caused by technological actions after the rampant antitrust dispute. Manufacturers of cars and motherboards led the rally after Mexico said they believed there was an 80% chance of a deal with Trump. As a result, the Mexican peso also rose against the dollar.
Powell's comments only fueled speculation that the central bank will cut interest rates later this year to curb the decline in economic growth. Interest-sensitive and property-sensitive assets (shares of such companies) were the only two sectors of the 11 in the S&P500 that retreated. 10-year bond yields rose for the first time in a week, and the US dollar is shaking in both directions today.
Here are the more important events ahead:
The main moves today in the market:
Source: Bloomberg Finance L.P.
Photo: Flickr
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