US futures, stocks advance as rate-hike worries ease

 

Bloomberg

US futures and stocks rise on Friday after Federal Reserve Chair Jerome Powell pushed back against speculation of steeper interest-rate hikes. Risk sentiment was boosted by a rebound in cryptocurrencies.
Contracts on the S&P 500 gained 1% and those on the Nasdaq 100 climbed 1.6%. Twitter Inc shares plunged as much as 26% in New York premarket trading after Elon Musk tweeted that his deal for the social media company was temporarily on hold. Europe’s Stoxx 600 index rises 1.3% as the lowest valuations since the start of the pandemic drew buyers.
A dollar gauge dipped but remains on course for its longest streak of weekly gains since 2018. Treasuries gave back some of their recent rally, with yields rising across the curve. The yen retreated.
Powell reaffirmed the Fed is likely to raise rates by a half point at each of its next two meetings and isn’t “actively considering” a 75 basis-point move. Concerns that tightening monetary policy will spark an economic downturn continue to shadow markets and have tended to snuff out rebounds. China’s Covid lockdowns and Russia’s war in Ukraine have also roiled a range of assets this year, leaving world shares near a bear market.
It’s a “very tough time,” Kathy Entwistle, managing director at Morgan Stanley Private Wealth Management, said on Bloomberg Television. “We’re holding just still and quiet and patient and waiting for some more insights as to where we’re going. We still see a lot of volatility on the horizon.”
An Asian share gauge climbed 1.5%, aided by rallies in Chinese technology stocks.
As traders watched for any sign of a change to China’s Covid-Zero policy, an official said tests will be made available within 15 minutes’ walk in big cities. In Beijing, officials denied the city will be locked down, while Shanghai said it plans to achieve “no community spread” of the virus by mid-May.
In other New York premarket trading Friday, Robinhood Markets Inc. surged after cryptocurrency billionaire Sam Bankman-Fried disclosed a new 7.6% stake in the online brokerage.
Abating panic in highly speculative cryptocurrency market was among the highlights of a risk-on environment on the last day of the week. Bitcoin added about $1,900 to top $30,000. US cryptocurrency-exposed stocks including Riot Blockchain Inc. and Marathon Digital Holdings Inc also rallied premarket.
Oil prices rise towards $108 a barrel. Wheat futures soared to a record in Paris and headed for the best week in a month in Chicago as dryness in western Europe threatens the coming harvest amid shrinking global stockpiles.
European Union nations say it may be time to consider delaying a push to ban Russian oil if the bloc can’t persuade Hungary to back the embargo. Wheat production in Ukraine, one of the biggest growers, will fall by one-third compared to last year, according to a US forecast.

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