NEW YORK, June 22 — Stocks on global indexes rose sharply on Tuesday, with major US stock indexes each ending up more than 2 per cent following a recent selloff, while the Japanese yen fell against the US dollar to its lowest level since October 1998.

Wall Street climbed as participants returned from a long weekend, with investors buying up shares of megacap growth and energy companies hit last week by global economic worries.

“After back-to-back weeks of 5 per cent declines, you’ve pushed the ball under the water far enough now that we’re getting a bounce,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

But, Nolte said, “interest rates are still going higher. Oil is still going higher.” Energy shares climbed along with oil prices. Oil gained on high summer fuel demand. The S&P 500 energy index jumped 5.1 per cent.


Last week, the S&P 500 confirmed it is in a bear market as investors sold stocks amid worries over whether the Federal Reserve will be able to tame inflation without triggering a recession.

Investors expect interest rate hikes from other major central banks as well.

The Dow Jones Industrial Average rose 641.47 points, or 2.15 per cent, to 30,530.25, the S&P 500 gained 89.95 points, or 2.45 per cent, to 3,764.79 and the Nasdaq Composite added 270.95 points, or 2.51 per cent, to 11,069.30.


The pan-European STOXX 600 index rose 0.35 per cent and MSCI’s gauge of stocks across the globe gained 1.91 per cent.

US Treasury yields were higher as the risk-off mode that weighed on US markets last week took a breather.

Benchmark 10-year yields climbed to 3.303 per cent from their 3.239 per cent close at the end of last week.

All eyes are now on Fed Chair Jerome Powell’s testimony to the Senate Banking Committee on Wednesday for clues on rates.

Goldman Sachs has said it now thinks there is a 30 per cent chance of the US economy tipping into a recession over the next year, up from its previous forecast of 15 per cent.

In the foreign exchange market, the yen dropped to a new 24-year low JPY=EBS.

Japanese Prime Minister Fumio Kishida said the central bank should maintain its current ultra-loose monetary policy. This makes it an outlier among other major central banks.

The dollar index was little changed at 104.41, but it was supported overall by the expectations of rate hikes at upcoming Fed meetings.

Brent crude futures rose 52 cents, or 0.5 per cent, to settle at US$114.65 (RM504.23) a barrel. The US West Texas Intermediate (WTI) crude contract for July expired on Tuesday, closing at US$110.65, with a gain of US$1.09, or 1 per cent. The more active August contract was up US$1.53 at US$109.52.

Spot gold dropped 0.3 per cent to US$1,832.77 an ounce.

Bitcoin last rose 1.56 per cent to US$20,876.57. — Reuters