Stocks – Wall Street Opens Higher as Market Sees Guaranteed Rate Cuts

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By Kim Khan

Investing.com – Buying in futures shortly before the opening bell helped Wall Street start the week in the green as investors bet on central banks pulling out all the stops to soften the impact of Covid-19 on the global economy.

The rose 270 points, 1.07%, at the start of trading. The S&P gained 0.82% and the 1.02%.

The global death toll from the novel coronavirus surpassed 3,000 and South Korea reported 599 new cases.

But the Bank of Japan and the Bank of England promised action to ensure financial market stability, joining Federal Reserve Chairman Jerome Powell’s Friday comments that rates cold come down due to “evolving risks.”

There is a 100% chance the Fed will cut rates by 50 basis points at its March meeting, according to Investing.com’s . Goldman Sachs (NYSE:) on Sunday predicted another 50-point cut on top of March coming in the second quarter.

As confidence of lower rates surged, bond yields plunged.

On the shorter end of the curve, the yield sank hit an low of 0.71% and was 0.808% when stocks opened, levels not seen since 2016, The benchmark yield fell to 1.088%.

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