Stock Market Today - 6/21: Stocks Surge As Bond Yields Ease, But Recession Concerns Linger
U.S. stocks rebounded firmly Tuesday, following on from the worst week on Wall Street in more than two years..
as investors eased back into risk markets despite persistent concerns over growth and inflation and fears of a near-term recession.
The U.S. dollar index, which tracks the greenback against a basket of six global currency peers and often acts as a proxy for risk appetite, fell 0.4% in overnight trading to 104.309..
as markets in Asia and Europe built modest gains -- the latter bouncing from the lowest levels in a year last week -- even as many of the same macro concerns continue to accumulate.
The dollar was also pressured by comments from the European Central Bank's chief economist Philip Lane, who signaled support for a 25 basis point rate hike in Frankfurt next month..
but left open the possibility of a bigger move in September as policymakers grapple with the fastest inflation on record in the single-currency area.
A modestly better-than-expected reading for May existing home sales, which fell 3.4% to an annual rate of 5.41 million, gave stocks an added early-morning boost.
Rate bets are also accelerating in the U.S., which inflation is running at a forty year high of 8.6%..
with the CME Group's FedWatch tool indicating a 98.1% chance of a 75 basis point hike in late July, and a 37.3% chance of a similar move in September.
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