te US Fed Chair Jerome Powell's commentary lifts mood of markets, Nasdaq ends at record high; bitcoin fell on Tuesday | Zee Business

US Fed Chair Jerome Powell's commentary lifts mood of markets, Nasdaq ends at record high; bitcoin fell on Tuesday

The mood and sentiment of global markets including the US have lifted after the US Fed Reserve Chair Jerome Powell’s statement on the economic recovery and inflation reduction.  Besides the US market, Asian markets are trading higher, with SGX Nifty up by 50 points while Dow Futures also remaining positive. 

US Fed Chair Jerome Powell's commentary lifts mood of markets, Nasdaq ends at record high; bitcoin fell on Tuesday
Fed Chair said that the reason behind the current inflation scenario was the quick unlocking process: PTI

The mood and sentiment of global markets including the US have lifted after the US Fed Reserve Chair Jerome Powell’s statement on the economic recovery and inflation reduction.  Besides the US market, Asian markets are trading higher, with SGX Nifty up by 50 points while Dow Futures also remaining positive. 

On Tuesday, Powell in his commentary assured that the stimulus will increase and rates will go down adding further that the inflationary pressure was temporary, and it will decline going forward, despite it being above comfort level at present. 

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Fed Chair said that the reason behind the current inflation scenario was the quick unlocking process, which adversely impacted the demand and supply equation. As a result of this, demand jumped but couldn't match the expectations of supply, he added. Powell expected conditions to improve, going forward. 

The economic recovery in the US was the fastest, Powell said indicating that the persisting coronavirus concerns and impact were still lingering. He further said that this concern will continue, though the inflation will be under control, going forward. 

The US markets were muted before Powell’s statement came and immediately jumped after the US Fed Chair portrayed confidence with respect to inflation and economic recovery.  

Dow was trading above 300 points intraday, to end at 70 points higher, while NASDAQ created a new record high and S&P closed almost at a record-high level, boosted by IT stocks on Tuesday. 

Similarly, 10-year bond yields slipped from 1.48 to 1.46 per cent, and even European markets saw buying. 

Moreover, commodities such as oil, gold, and dollar were also trading in a range-bound manner. While, in the cryptocurrency space, Bitcoin fell by around $30,000 yesterday at the intraday level.

Reported By: ZeeBiz WebTeam
Written By: Shivendra Kumar
Edited By: ZeeBiz WebTeam
Updated: Wed, Jun 23, 2021
09:50 am
Mumbai, ZeeBiz WebDesk
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