Despite the sharp decline, stocks reached their lows during the session. On Friday, US equities rose and recovered from a three-day sell-off as oil prices stabilized. The unrest over the Libyan uprising, however, could be enough to keep the purchase in check. They have now fallen two weeks in a row and four of the last five. After selling off Monday, they showed a strong uptrend on Tuesday. Asia Asian equities ended mixed on Wednesday as investors braced for China’s counter-measures against US tariffs on Chinese products valued at around $ 50 billion.
If higher energy prices occur in the future, inflation could rise as measured by the CPI-U, which could be due to Treasury yields are higher, while the FOMC is pressured to raise interest rates at the short end. For the most part, equities have turned sharply south as investors are worried about rising interest rates. After a two-day crash, they ended the week with an advance on Friday, suggesting that Wall Street could eventually be successfully weaned off the Federal Reserve’s simple money. Europe European equities fell largely on Wednesday as the dollar plummeted against the euro on concerns over a global trade war.
Friday’s Job Report triggered concerns over inflation and bond yields, and worried that the Federal Reserve would raise interest rates faster than expected. The Fed’s move also raised the yield on the 10-year Treasury note to its highest level in nearly two years as investors pledged that US interest rates would rise. The rebound brought the dollar to a high of 108.88. Friday’s rebound followed a late Thursday, showing buyers were ready to support stocks following a sell-off. The recovery was fueled by new reports that President Donald Trump and Chinese leader Xi Jinping have agreed to hold a meeting at the G-20 summit next month.