Stocks jump on China shares; bonds flash post-Fed concern

Stocks jump on China shares; bonds flash post-Fed concern

Stocks















Bloomberg

Stocks jumped on Thursday on a surge in Chinese technology shares and as traders digested the Federal Reserve’s view that a robust US economy can weather the campaign against high inflation now underway.

An Asia-Pacific equity index rises about 3%, boosted by China’s effort to stabilize its markets, which was unveiled a day ago. US and European futures climbed after the S&P 500’s best two-day advance since 2020. Possible progress on Russia-Ukraine cease-fire talks is also helping sentiment.

The Federal Reserve raised rates by a quarter percentage point and signalled hikes at all six remaining meetings in 2022. Chair Jerome Powell said the US economy is “very strong” and can handle monetary tightening.

Treasuries advanced, while a portion of the bond curve — the gap between five- and 10-year yields — inverted for the first time since March 2020. For some, the latter highlights a growing risk that the Fed’s efforts to rein in inflation could trigger an economic downturn.

The dollar was steady and the yen hovered near a six-year low. Oil snapped a three-day drop but remains down more than 10% for the week.

The Fed said it