Stocks rise as traders re-enter the market ahead of the Fed’s testimony.
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On Tuesday, global markets regained some of their recent losses, while government bond yields fell as investors re-invested in riskier assets ahead of US Federal Reserve Chair Jerome Powell’s testimony before the Senate Banking Committee.
Investors are hoping Powell’s appearance before the committee, which will be followed by a hearing with vice chair nominee Lael Brainard on Thursday, would provide more hints to the timing of expected policy tightening.
The tiny gain in stock prices in early Tuesday trading comes after a week of steep losses for stock markets as investors worried about the potential of greater monetary tightening in the United States and the impact of overvalued stock prices that achieved a series of new highs in 2021.
While bond yields are expected to stay higher than last year, many economists believe that a strong prognosis for economic growth and corporate profitability will provide some support to stocks.