---
title: "Stocks Push Higher as Fedspeak Reassures Traders: Markets Wrap"
description: "US stocks rose after Federal Reserve Vice Chair Lael Brainard acknowledged the need to monitor the impact rising borrowing costs could have on global-market stability, while reiterating the central bank’s higher-rates-for-longer message."
type: "NewsArticle"
publisher: "Daily Maverick"
site: "https://www.dailymaverick.co.za"
section: "Business Maverick"
author: "Bloomberg"
author_url: "https://www.dailymaverick.co.za/author/bloomberg/"
canonical_url: "https://www.dailymaverick.co.za/article/2022-09-30-stocks-push-higher-as-fedspeak-reassures-traders-markets-wrap/"
published: "2022-09-30T17:28:39"
lang: "en-ZA"
word_count: 595
---

# Stocks Push Higher as Fedspeak Reassures Traders: Markets Wrap

> US stocks rose after Federal Reserve Vice Chair Lael Brainard acknowledged the need to monitor the impact rising borrowing costs could have on global-market stability, while reiterating the central bank’s higher-rates-for-longer message.

By Bloomberg · Published 30 September 2022, 19:28 SAST

## Content

The S&P 500 climbed as much as 0.9%, after dropping as much as 0.7% earlier in the session. The tech-heavy Nasdaq 100 pushed above 1%. US Treasury yields slid, with the benchmark 10-year rate around 3.73%.

Fed officials, all week, have been drilling in the message that they’ll continue to be aggressive to combat inflation. Friday’s comments came with some nuance. While Richmond Fed’s Thomas Barkin said key pressures stoking price growth are showing some signs of easing, San Francisco’s Fed Mary Daly said incoming data will determine how much the Fed will raise interest rates by. Investors now seem to be getting comfortable that tighter financial conditions will slow growth, said Dennis DeBusschere, founder of 22V Research.

US long-term inflation expectations also [continued to ease in September](https://www.bloomberg.com/news/articles/2022-09-30/us-long-term-inflation-views-ease-further-lifting-sentiment), which helped lift consumer sentiment from the previous month despite growing economic uncertainty.

“The Fed is the only game in town,” said Brian Levitt, Invesco’s global market strategist. “Brainard’s comments provide hope. The Fed wants to slow growth, but not crush it.”

A bruising session on Wall Street Thursday had already taken the S&P 500 down 2% to the lowest in almost two years and sent the Nasdaq 100 tumbling almost 4%. The S&P 500 is headed for its third straight quarter of losses for the first time since 2009 and the Nasdaq 100 for the first time in 20 years.

“By no means do I think we get a soft landing, but too much Fed-based negativity is priced in, and the data could start tilting toward lower inflation than the market -- and Fed -- have been fixated on,” wrote Peter Tchir, head of macro strategy at Academy Securities. “I continue to believe the ultimate lows will be in a true “risk-off” scenario, where bonds rally while stocks fall. But I think for now, both can limp into month-end and get some strength.”

Fears of global recession are still mounting as the threat of higher rates saps growth. The case of the UK shows how faultlines between government and central bank policy on tackling inflation can erupt into a crisis. Hopes evaporated that the British government would succumb to pressure to back down from tax cuts that brought the pound to the edge of dollar parity.

Traders are now gauging the next [pressure points](https://www.bloomberg.com/news/articles/2022-09-30/the-market-pain-levels-that-may-spark-the-next-uk-policy-action) that will further erode gains won by the Bank of England’s billions in bond-market buying in the past two days.

Read more: [UK Treasury Hasn’t Sought to Speed Up Budget Watchdog’s Forecast](https://www.bloomberg.com/news/articles/2022-09-30/uk-treasury-hasn-t-sought-to-speed-up-budget-watchdog-s-forecast)

Geopolitical tensions also continued to simmer as Vladimir Putin vowed his annexation of four occupied regions in Ukraine is [irreversible.](https://www.bloomberg.com/news/articles/2022-09-30/putin-poised-to-formalize-annexation-of-occupied-ukraine-regions)

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Key events this week:

- Euro zone CPI, unemployment, Friday
- University of Michigan consumer sentiment, Friday
- Fed’s John Williams to speak, Friday

Some of the main moves in markets:

### Stocks

- The S&P 500 rose 0.8% as of 11:14 a.m. New York time
- The Nasdaq 100 rose 1.1%
- The Dow Jones Industrial Average rose 0.4%
- The Stoxx Europe 600 rose 1.1%
- The MSCI World index fell 1.4%

### Currencies

- The Bloomberg Dollar Spot Index was little changed
- The euro was little changed at $0.9807
- The British pound rose 0.5% to $1.1174
- The Japanese yen fell 0.1% to 144.61 per dollar

### Cryptocurrencies

- Bitcoin rose 3.2% to $20,124.09
- Ether rose 2.3% to $1,368.82

### Bonds

- The yield on 10-year Treasuries declined five basis points to 3.74%
- Germany’s 10-year yield declined six basis points to 2.12%
- Britain’s 10-year yield declined three basis points to 4.12%

### Commodities

- West Texas Intermediate crude fell 0.6% to $80.75 a barrel
- Gold futures rose 0.8% to $1,681.60 an ounce