Stocks Gain as Fed Hawks Downplay Recession Fears: Markets Wrap
- Fed officials backed raising rates by another 75 bps in July
- The dollar retreated for the first time in five days
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US stocks rallied for the fourth straight day on optimism that the Federal Reserve will be able to curb inflation without tipping the economy into a recession.
The S&P 500 and the tech-heavy Nasdaq 100 rose the most in two weeks. Commodities from oil to copper jumped as the dollar dropped for the first time in five days. The two- and 10-year Treasury yield curve remained inverted for a third day even as Fed Governor Christopher Waller dismissed recession fears on Thursday. Both Waller and fellow hawk James Bullard, president of the St. Louis Fed, backed raising rates by another 75 basis points this month.