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

Source: Investing Live