On Thursday, the stock trading market recorded a significant surge. The data shows that the stocks finished on a higher scale for the US market.
However, the value of the US dollar has experienced a downtrend. The value of the dollar has become soft in recent trading sessions.
This has reportedly pulled the yields from the Treasury bonds. The yields have been moving in a lower direction due to the weakening performance of the USD.
Investors Look Forward to Jackson Hole Symposium
The investors are waiting for the Jackson Hole Symposium to happen where they will get to know what the US Feds have to say about the economy.
They want to know whether the US Feds will continue hiking the interest rates to control inflation or go with a different approach.
If the interest rates are to be increased, then the investors may not remain much bullish on investing in the stock markets.
For now, the investors are keeping their hopes high and have developed a rather bullish preference toward the interest rates.
Comments by Economists
While investors expect lowered interest rates, economists are making different comments. According to the economists, it is highly likely that the Feds may continue increasing the interest rates aggressively.
The economists and the Feds are considering the NFP and the CPI data as they calculate the impact of a hike in the interest rates.
As the CPI and NFP results have been promising, it has provided the Feds with a cushion to continue increasing the interest rates.
Therefore, many expect that Jerome Powell, the Federal Reserve Chairman would speak in favor of rate hikes. However, the recent performance of the US economy has been in the green.
This is also an indication that the Feds may not need to hike the interest rates to control inflation, as it may decrease due to other factors.
If the Feds proceed with the planned rate hikes, then the investment community would witness a 75bps rise in the interest rates.
DXY and Exchange Performances
The data from the USD Index shows that in the latest trading session, the value of the USD has fallen 0.21% compared to the basket of major currencies. At the time of publication, the value of the USD versus the basket currencies stands at 108.45.
Coming to the index performances, the Stoxx 600 Index from Europe has moved 0.32% higher. The MSCI ex-Japan Index has also recorded a 1.96% gain in the latest trading session.
The S&P 500 has recorded a 1.42% surge in the latest stock trading session. The Dow Jones Industrial Average has also gained a 0.98% increment, adding 324 points. At present, the Dow Jones Index is sitting at 33,293 points. The NASDAQ stock exchange has also recorded an advancement of 1.67%.