The dollar rebounded, long-term bond yields increased, and Asian stocks rose following the U.S. Federal Reserve’s announcement of a 50-basis-point rate cut, signaling a cautious approach to further easing.
The S&P 500 hit a record high overnight and although it closed slightly lower, futures rose 0.67% in the Asia day. Nasdaq futures were up 1%. Japan’s Nikkei jumped 2.5% and stock markets in Australia and Indonesia hit record highs, News.Az reports, citing Reuters.
The Fed lowered its window for the benchmark policy rate by 50 basis points to 4.75-5%, where traders had been leaning before the decision. The dollar immediately hit a two-and-a-half-year low on sterling, but then recoiled sharply.
It was up nearly 1% to 143.55 yen early on Thursday and well off lows on the euro at $1.1097.
Ten-year Treasury yields have climbed nearly eight basis points from a day…
