Shares rose on Wednesday as hopes grew of a U.S. interest rate cut to calm turbulent markets but an increase in risk appetite sent bonds lower and put the yen under pressure.
The yen fell and high-yielding currencies rose on Wednesday as growing expectations of a U.S. rate cut to ease tight liquidity conditions instilled a sense of calm and prompted investors to reenter risky carry trades.
Stocks gained on Wednesday, boosted by optimism about renewed deal activity and ongoing speculation the Federal Reserve might cut its benchmark interest rate to calm turbulent financial markets.
Stocks were heading for a higher open on Wednesday on optimism about renewed deal activity and speculation the Federal Reserve might cut its benchmark interest rate to calm turbulent markets.
Most Asian stocks tiptoed higher in early trade on Wednesday, lifted by hopes that the U.S. might cut interest rates to calm turbulent markets, but the stronger yen weighed on Japan's exporters, such as Toyota Motor.
The S&P 500 and Nasdaq rose on Tuesday as a signal that the Federal Reserve might cut its benchmark interest rate soon muted persistent concerns about withering credit markets.
Federal Reserve Chairman Ben Bernanke signaled a willingness to consider an early cut in the benchmark interest rate to quell market unrest, a key U.S. lawmaker said on Tuesday after meeting with the Fed chief, sending Wall Street higher.
Decades pass but the story remains the same -- financial markets lurch from boom to bust, central banks rush in to avert disaster and their rescue operation sets the scene for yet another boom-bust sequel.
Stock markets may have fallen sharply from their recent highs over the past weeks, but there is a wall of money sitting out there that could turn it all into a far greater rout.
U.S. stocks rose to session highs on Tuesday after a U.S. lawmaker said the Federal Reserve chairman pledged to use all available tools to calm financial markets, increasing speculation about a rate cut. U.S. crude oil futures fell below $70 a barrel, pushing up airline stocks like the parent of American Airlines, AMR Corp., up nearly 7 percent at $23.73. It was the first time oil has fallen below $70 since July 2.
Dell Inc. shares shed more than 2 percent on Tuesday amid concerns that industry-wide constraints on some display screen components and production issues with the paint on some of its notebook PC lines could delay the delivery of new machines.
Shares of Take-Two Interactive Inc. rose about 10 percent on Tuesday after the interactive entertainment company announced the North American release of its highly anticipated science-fiction shooter game BioShock.
The yen gained broadly in volatile trading on Tuesday as persistent jitters about global credit conditions prodded investors to sell more risky assets funded by borrowing at low rates in the Japanese currency.
Shares of KKR Financial Holdings LLC (NYSE: KFN), an affiliate of private equity giant Kohlberg Kravis Roberts & Co., rose over 8 percent on Monday after it announced a plan to raise $500 million in cash from investors, including existing shareholders.
As the stock exchanges prepare to release their monthly short interest reports this week, Wall Street is waiting with more anticipation than usual.
U.S. blue-chip stocks rose on Monday after reversing direction in the last hour of trade as the flight to safety into short-dated Treasury bills flagged, suggesting concerns over the stability of credit markets were receding.
Stocks fell on Monday, led by losses in financial companies, as worries about spillover from the subprime mortgage market lingered despite the Federal Reserve's surprise discount rate cut on Friday.
Calm returned slowly to financial markets on Monday, but there were lingering signs that credit problems persist despite policy-makers' insistence that the global economic growth would remain solid.
KKR Financial Holdings LLC, a specialty finance firm, on Monday said it planned to sell about $500 million in stock, but could take a $200 million charge from mortgage bond-related losses and be forced to change its tax status.
The yen fell on Monday, giving up some of last week's steep gains, as some risk appetite returned to the market after the Federal Reserve's surprise decision on Friday to cut its discount lending rate.
Mortgage lenders' and financial companies' debt insurance costs fell on Monday, continuing improvements from Friday when a Federal Reserve discount rate cut sparked a rally in most global markets.
Stocks were little changed on Monday as investors mulled the likelihood of more Federal Reserve action after Friday's surprise cut in the rate at which banks borrow from it.
Investors boosted stocks and moved back into other riskier assets on Monday as immediate fears of a credit crunch waned following the Federal Reserve's confidence-building move last week.
U.S. index futures pointed to a firmer start on Wall Street on Monday, building on gains in the previous session after the Federal Reserve cut the discount rate it charges banks, and with little scheduled news on the agenda.
The Federal Reserve came to the stock market's rescue on Friday but unless credit markets remain stable next week, the salvation may prove little more than a brief respite from its late summer sell-off.
The global credit squeeze is removing a crutch that has done much to prop up the U.S. stock market during the past 18 months.
The dollar fell against the euro and high-yielding currencies on Friday after the Federal Reserve cut the discount rate and said downside risks to the U.S. economy have increased.
The Nikkei plunged more than 5 percent in its biggest one-day loss since the September 11 attacks on Friday as sharp gains in the yen triggered concern about Japan's economic outlook and companies' profits, hammering shares of exporters such as Toyota Motor Corp.
World stocks took another dive on Friday despite early attempts at a rebound in Europe while currency dealers drove the Japanese yen to a 14-month high against the dollar, throwing out risky leverage. Wall Street looked set for a weak opening.
Stocks surged on Friday to end a turbulent week after the Federal Reserve cut the discount rate it charges banks in an emergency move to stabilize credit markets and keep the economy on track. World stock markets have fallen sharply, with investors fleeing riskier assets as problems in U.S. subprime mortgage lending spread rapidly in other credit markets .
