Global stock markets have recovered from yesterday’s surprise admission that the Federal Reserve would be willing to combat inflation with 50 basis point rate hikes, putting them firmly in contractionary mode.
Bond markets continue to be among the hardest hit, particularly long duration government bond strategies, with US stock markets outperforming on signs the economy remains strong.
The Dow Jones added 0.7%, the S&P 500 gained 1.1% and the Nasdaq jumped 1.9% with technology a key contributor.
Alibaba extends buyback
Alibaba (NYSE: BABA) announced it would be extending its US$15 billion share buyback to US$25 billion in a sign that management believes the shares remain cheap. The Alibaba share price gained more than 11% on the news.
Nike reports
Nike (NYSE: NKE) has been struggling in recent months due to supply chain issues, falling sales in China and higher labour costs but reporting some improvement in its latest quarterly update.
Earnings continued to fall slightly, however, revenue was around 5% higher as the company continues to pivot towards direct-to-consumer sales rather than the traditional retailing route. Nike shares gained 2%.
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is heading towards a flat open this morning. For a round-up of the latest news, check out my ASX 200 morning report.