U.S. Indexes Extend Weekly Gains, Crude Oil Rebounds

Barry Adams
09 Sep, 2022
New York City

Stocks on Wall Street are trading higher and benchmark indexes are set to extend weekly gains, after falling for three weeks in a row. 

Investors are still questioning the Fed's commitment in fighting sky-high inflation, and rates have lagged for inflation for nearly two years. 

Inflation has been rising for 22 months in a row and hovering near 9% but interest rates are lagging significantly near 2%. 

Moreover, the longer the Fed takes in taming inflation, longer the duration of high rates will be needed. 

Over the last two weeks, the Federal Reserve Chair Jerome Powell's forcefully reiterated central bank's commitment in fighting high inflation has left many on Wall Street unconvinced.   

The S&P 500 index gained 0.3% to 4,030.25 and the Nasdaq Composite index added 0.2% to 11,945,23.

For the week, the two popular indexes are up 2%. 

Futures of crude oil increased $2.61 to $86.16 a barrel and natural gas rose 14 cents to $8.06 a thermal unit. 

Oil prices rose after news that the U.S. President Biden's administration is not looking to release more oil from the U.S. Strategic Petroleum Reserve. 

Oil traders also reviewed Russia's threat to divert energy exports from Europe to Asia after G7 finance ministers proposed a price cap. 

The yield on 2-year Treasury notes eased to 3.48%, 10-year Treasury notes declined 3.25% and 30-year bonds edged down to 3.43%. 

In Europe, benchmark indexes rebounded a day after the European Central Bank lifted rates by 75 basis points, the largest rate hike in 23 years. 

Crude oil is still set to close down for the second week in a row after the European Central Bank's aggressive rate hike and widening activity restrictions in China, the largest importer of the commodity. 

The DAX index added 1.2% to 13,063.67, the CAC-40 index increased 1.3% to 6,206.08, and the FTSE 100 index advanced 1.4% to 7,366.16. 

The euro jumped above the parity and traded at $1.005 and the British pound inched up to $1.16.