News

Gold price jumps as dovish Fed sends dollar sliding

US Treasuries staged a historic rally and stocks jumped as comments from Federal Reserve chair Jay Powell further spurred a rally that began after the central bank published a more dovish outlook than investors had anticipated.

The yield on the policy-sensitive two-year note was down 0.25 percentage points in afternoon trading at a six-month low of 4.48 per cent. That ranked as its biggest daily drop since the collapse of Silicon Valley Bank in March.

At its intraday low, the two-year yield was down 0.3 percentage points, which would have ranked as its 10th-largest one-day move this century. Bond prices rise as yields fall.

The 10-year yield hit its lowest since August, hovering just above 4 per cent.

The S&P 500 stood almost 1.4 per cent higher as Powell spoke, on track for its biggest jump in a month, having been flat before the Fed’s initial announcement.

Articles You May Like

Trump lashes out as race with Harris goes down to the wire
Mortgage rates surge higher on Trump victory, causing housing stocks to fall
Trump eyes Burgum as new ‘energy tsar’ to slash regulations
Trump Media shares surge as Trump wins presidential election
Billions of local bonds in front of voters in Texas and the Southwest