# Global stocks rebound from sell-off; Treasury yields, dollar higher
Author: Pal sinha, Barnali
Author URL: https://startupobserver.com/author/pal-sinha-barnali/
Published: 2024-08-06
Category: Headlines
Category URL: https://startupobserver.com/category/headlines/
Meta Title: Equities Rebound as Central Bankers Push Back
Meta Description: Equities worldwide rebound after selloff. Central bankers ease recession fears. Follow trend with volatile oil prices and positive market adjustments.
URL: https://startupobserver.com/global-stocks-rebound-from-sell-off-treasury-yields-dollar-higher/

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By Sinéad Carew and Amanda Cooper

NEW YORK/ LONDON (Reuters) – Equities around the world were attempting a comeback on Tuesday after the previous day’s aggressive selloff while Treasury yields [rose](https://startupobserver.com/car-sales-push-irish-retail-sales-sharply-higher-again/) and the dollar was slightly higher as central banker comments countered [recession](https://startupobserver.com/german-economy-expected-to-grow-in-2024-official-says/) fears.

Oil prices were volatile, with a weak outlook for demand partly offset by price support stemming from the risks of an escalation in the Middle East conflict as well as from a drop in Libyan production.

But the Nikkei’s roughly 10% rebound in Tokyo brought some relief after the index’s 12.4% drop on Monday – its biggest daily sell-off since the 1987 Black Monday crash.

U.S. Federal Reserve policymakers pushed back on Monday against the notion that weaker-than-expected July jobs data means that the economy is in a recessionary freefall.

Late on Monday San Francisco Fed President Mary Daly said the jobs report leaves “a little more room for confidence that we’re slowing but not falling off a cliff”. But she said it was “extremely important” to keep the jobs market from falling over.

The S&P 500 had lost 3% on Monday, while the Nasdaq slumped 3.43%, extending a recent sell-off as fears of a possible U.S. recession spooked global markets.

“We’re just getting a little bounce after the sell-off of the last few days, We’re seeing a risk-on bounce,” said Michael O’Rourke, chief market strategist at JonesTrading in Stamford, Connecticut, noting that investors were adjusting valuations to prepare in case of a recession..

“You had people panicking yesterday, worried about a recession. We’re having a slowdown but that was the intention of the rate hikes,” said O’Rourke.

“You want to make sure it doesn’t turn into a [recession,](https://startupobserver.com/german-economy-expected-to-grow-in-2024-official-says/) that we’re not slowing too quickly. But thus far the economic data this year is not recessionary.”

On Wall Street at 11:12 a.m. the Dow Jones Industrial Average rose 399.02 points, or 1.03%, to 39,102.29, the S&P 500 gained 73.47 points, or 1.42%, to 5,259.80 and the Nasdaq Composite gained 228.07 points, or 1.41%, to 16,428.15.

MSCI’s gauge of stocks across the globe rose 11.04 points, or 1.45%, to 773.12 after falling more than 3% on Monday, which was its third straight session of declines.

Europe’s STOXX 600 index rose 0.46% in a volatile session with a dip of around 0.5% at its lowest point.

The dollar recovered a little against most major peers and the Japanese yen steadied around 7-month highs against the U.S. currency as some of the more striking moves of recent days reversed somewhat, and a semblance of calm returned to markets.

The dollar index, which measures the greenback against a basket of currencies including the yen and the euro, gained 0.06% to 102.93.

Against the Japanese yen, the dollar strengthened 0.37% to 144.7 while the euro was down 0.2% at $1.093.

U.S. Treasury yields [rose](https://startupobserver.com/car-sales-push-irish-retail-sales-sharply-higher-again/) as fears that the U.S. economy is quickly entering a recession were seen as overdone, while safe haven demand for U.S. bonds also ebbed as stocks recovered.

The yield on benchmark U.S. 10-year notes rose 7.5 basis points to 3.858%, from 3.783% late on Monday while the 30-year bond yield rose 6.9 basis points to 4.14%.

The 2-year note yield, which typically moves in step with interest rate expectations, rose 9.8 basis points to 3.9833%, from 3.885% late on Monday.

Oil prices were volatile with U.S. crude up 0.48% at $73.29 a barrel while Brent rose to $76.5 per barrel, up 0.26% on the day.

In precious metals, gold prices fell as the [dollar](https://startupobserver.com/dollar-jumps-as-u-s-job-gains-wage-growth-beat-expectations/) firmed, although expectations of a U.S. rate cut in September and escalating Middle East tensions limited losses.

Spot gold lost 0.91% to $2,385.70 an ounce. U.S. gold futures fell 0.72% to $2,384.30 an ounce.

(Reporting by Sinéad Carew in New York, Amanda Cooper in London, Wayne Cole in Sydney and Rae Wee and Vidya Ranganathan in Singapore; Editing by Emelia Sithole-Matarise, Bernadette Baum and Gareth Jones)


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