Stocks rose Thursday in the wake of reassuring comments on monetary-policy tightening from Federal Reserve Chair Jerome Powell, while crude oil extended gains sparked by Russia’s invasion of Ukraine.
Japan led a climb in an Asian share index, while Chinese technology stocks lagged. European futures slipped and U.S. contracts were steady after broad rallies lifted the S&P 500 and Nasdaq 100 on Wednesday.
Powell in testimony to U.S. lawmakers backed a measured Fed interest-rate liftoff and vigilance on inflation, while indicating the world’s biggest economy can weather higher borrowing costs.
The sanctions imposed on Russia have caused traders to back away from its resources, stoking fears of shortfalls in energy, grains and metals. Brent crude scaled $116 a barrel, and a commodity index is at a record high. Haven demand triggered by the war moderated a little. Bonds in Australia and New Zealand retreated. Treasuries suffered sharp losses in the Wall Street session and have pared only a portion of the drop.
The U.S. 10-year yield — at about 1.85% — remains below the 2% levels seen before Russia’s action. The dollar ticked higher, while gold was steady. Powell voiced support for a quarter-point Fed rate hike later this month.
