Morning Report 12 Jan 22: ASX set for gains after Wall St rally ends at session highs

US sharemarkets rebounded on Tuesday as investors appeared relieved that Fed Chair Powell's testimony to US Congress did not include any major surprises. Shares of mega cap growth companies Apple (+1.7%) and Amazon (+2.4%) led gains. Genomic sequencing company Illumina's shares rallied 17% after it issued an upbeat revenue forecast. But Moderna shares fell 5.3% after the WHO said more research was needed on vaccine efficacy against the Omicron variant. At the close of trade, the Dow Jones index rose by 183 points or 0.5% after being down 299 points at session lows. The S&P 500 index lifted 0.9% and the Nasdaq index added 211 points or 1.4%. US treasuries rose on Tuesday (yields lower) after Fed Chair Jerome Powell detailed his plan to combat inflation. The US Treasury sold US$52bn worth of 3-year notes at a yield of 1.237% into solid demand. US 10-year yields fell by 4 points to near 1.74%. And US 2-year yields dipped by 1 point to near 0.895%.

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