“Stars of the future” soar more than 400 points, easing concerns about the Fed, the dollar weakens

Reporters reported that Dow Jones industrial average futures jumped more than 400 points, indicating that Wall Street stocks will continue their gains from yesterday.

As of 7:19 pm Thai time, the Dow futures index gained 422 points, or 1.43%, to 29,958 points.

The Dow jumped more than 700 points yesterday as investors eased concerns about faster interest rate hikes by the Federal Reserve after the US released weak economic data. Today’s trading is expected to continue to be supported by the depreciation of the dollar. After investors worried earlier that the appreciation of the dollar will affect the profits of listed companies with foreign income.

In addition, the market also received positive factors from the decline in US government bond yields. The 10-year US Treasury Bond is a reference to the price of corporate bonds around the world. This includes the US mortgage interest rate. A rise in government bond yields would make consumers have less money to spend

while the cost of paying the mortgage loan increases AND companies will face higher costs of paying debts. causing the company to reduce investment and reduce dividend payments to investors

Meanwhile, investors are dashing expectations that the Fed will raise interest rates by 0.75% at its November monetary policy meeting. after releasing weak economic numbers

The CME Group’s FedWatch Tool indicates that investors weigh 58.5% that the Fed will raise interest rates by 0.75% to 3.75-4.00% at its November 1-2 meeting, after previously weighing it up to 68.1%

Investors also raised their weighting to 41.5% on expectations that the Fed would raise interest rates by 0.50% at the meeting.

Investors have eased concerns about the Fed’s faster rate hikes. After the US revealed, the manufacturing index was the lowest in more than two years.

The Institute for Supply Management (ISM) said its manufacturing index fell to 50.9 in September, the lowest level in more than two years since May 2020. It was below analysts’ forecast of 52.3 from 52.8 in August.

The manufacturing index was affected by shrinking new orders. This was the third contraction this year, while employment contracted for the fourth time.

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