US Close 7 Dec 18: US markets roiled before a late recovery

US sharemarkets rebounded spectacularly on suggestions that the Federal Reserve was mulling a more cautious approach on rates. At the close the Dow Jones was down by 79 points or 0.3% after being down 785 points earlier in the session. The S&P500 index was lower by 0.2% and the Nasdaq index was up by 30 points or 0.4%.

 US treasury bond prices rose on Thursday (yields lower) as investors favoured safe-haven assets like government bonds in preference to equities and commodities. Also Atlanta Federal Reserve President Raphael Bostic believes that the federal funds rate is in "shouting distance" of the neutral level. US 2-year yields fell by 4 points to 2.76% and US 10-year yields fell by 3 points to 2.89%.

 

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