The U.S. dollar and stocks in New York stabilized on Wednesday, while U.S. Treasury Yields retreated from their 16-year high, easing pressure on the economy. Derek Halpenny, head of global markets research at MUFG Bank Ltd., observed: “If yields continue to move higher, at some point relatively soon we will see even larger equity market declines and a hit to the main engine of the US economy – the consumer.”
Futures on the S&P 500 advanced by 0.3%, as did those on the Nasdaq 100. Contracts listed on the Dow Jones Industrial Average edged 0.2% higher. The yield on 10-year Treasuries fell by four basis points to 4.5%.
While the Bloomberg Spot Dollar Index remained little changed, the U.S. dollar strengthened against several major currencies. The euro declined by 0.1% to $1.0559, while the offshore yuan fell 0.1% to 7.3176 per dollar. The British pound was unchanged at $1.2149.