US stocks move higher. Yields lower. US dollar lower after Fed Powell speech

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A snapshot of the US dollar, it is down versus all the major currencies:

  • EUR -0.81%
  • JPY -0.97%
  • GBP -0.75%
  • CHF -0.83%
  • CAD -0.40%
  • AUD -1.0%
  • NZD -0.81%

The market is reacting positively to the Fed chair speech as a tilt toward moving more toward a less restrictive/more balanced monetary policy. He commented that the downside risk to employment and that tariffs are likely to be a one-time price increase.

The chance of a cut in September are back to nearly 100% with 2 cuts before the end of the year

US stocks have moved higher

  • Dow industrial average up 1.52%
  • S&P index up 1.25%
  • NASDAQ index up 1.47%.

The small-cap Russell 2000 is the biggest gainer as smaller/riskier companies benefit from lower rates. It is currently up to 2.86%

Looking at the US yields, the shorter end is down 10 basis points with the

  • 2-year now at 3.692% -10.0 basis points.
  • 10-year yield is also lower but down -6.5 basis points at 4.267%.
  • 30-year yield is down -3.3 basis points at 4.890%..