New York Stock Market Rebounds on Fed 'Pace Adjustment' Resurgence... Dow Closes Up 2.47%

Pedestrians are passing in front of the New York Stock Exchange in the United States. [Image source=Yonhap News]

[Asia Economy Reporter Seongpil Cho] The New York stock market rose as expectations grew that the Federal Reserve (Fed) might slow the pace of interest rate hikes amid corporate earnings reports.

On the 21st (Eastern Time), at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average closed at 31,082.56, up 748.97 points (2.47%) from the previous session. The Standard & Poor's (S&P) 500 index rose 86.97 points (2.37%) to 3,752.75, and the tech-heavy Nasdaq index closed at 10,859.72, up 244.87 points (2.31%) from the previous session. The Dow rose 4.89% for the week, the S&P 500 increased by 4.74%, and the Nasdaq gained 5.22%. The three major indices recorded their largest weekly gains since June.

Investor sentiment improved as The Wall Street Journal raised the possibility that the Federal Reserve (Fed) might moderate the pace of rate hikes. The WSJ observed that the Fed is expected to raise rates by 0.75 percentage points at the November meeting and discuss whether and how to implement a smaller rate hike in December.

The ICE Dollar Index, which measures the value of the dollar against six major currencies, traded at 111.839, significantly down from above 113 earlier in the session. The decline in the dollar index was also influenced by reports of intervention by Japanese authorities in the foreign exchange market, which caused a sharp drop in the dollar-yen rate. The 2-year Treasury yield fell more than 10 basis points to 4.50%, while the 10-year Treasury yield hovered around 4.22%. The 10-year Treasury yield has risen for 12 consecutive weeks, marking the largest increase since 1987.

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