USA stocks rose, halting the longest slide since June, as an increase in consumer spending last month bolstered confidence in the economy and a drop in Treasury yields sparked demand for equities with rates of dividend payouts.
Fed Chair Yellen delivered the hawkish message we were looking for on Friday, telling her Jackson Hole audience that the case for raising rates has strengthened recently.
Gapen continued that Yellen's speech on Friday demonstrated "confidence" in the economic outlook and the confidence stems from the improving labor market since mid-year and a rebound in household spending. And what should investors do?
The S&P 500 increased 0.55%, the Dow Jones Industrial Average gained 0.58%, and the Nasdaq added 0.37%.
The dollar index, which tracks the greenback against a basket of six rivals, was up 0.1 per cent at 95.692.
Among stocks moving in early NY trading, Herbalife Ltd. rose 1.9 percent after a filing showed Carl Icahn added shares to his stake in the nutrition company on Friday, contradicting fellow billionaire Bill Ackman.
MSCI's all-country world equity index was last down 0.04 points, or just 0.01 percent, at 418.38. Asked whether there could be a rate hike next month and more than one this year, Fischer said that Yellen's comments were "consistent with answering yes to both" of the questions. Odds are almost 65 percent the central bank will act by the end of the year.
London police arrest 240 at Notting Hill Carnival
Dancers perform during the Children's Day parade at the Notting Hill Carnival in west London , Sunday, Aug. 28, 2016. On Sunday, families gathered in fancy dress and face paint to watch the parades dedicated especially to children.
Europe's broad FTSEurofirst 300 index was last down 0.19 per cent, at 1,350.13. The London Stock Exchange was closed for a summer bank holiday. It's still not up to 2 percent.
Oil prices fell modestly amid rising doubts about the potential for a meeting between Opec producers and Russian Federation in Algeria next month to take action to support crude prices by stabilizing, if not reducing, output. USA crude (CLc1) settled down 66 cents, or 1.39 percent, at $46.98 per barrel. In other energy trading, wholesale gasoline fell 5 cents to $1.47 a gallon, heating oil fell 1 cent to $1.49 a gallon and natural gas fell 2 cents to $2.85 per 1,000 cubic feet.
U.S. Treasury yields maturing between 2-10 years dipped on foreign demand after touching their highest levels since June on Friday.
The dollar climbed to 102.16 yen on Monday in Tokyo from 101.77 yen in NY and 100.48 yen in Tokyo earlier Friday.
The dollar rose to a three-week high against the yen on Monday after senior Federal Reserve officials bolstered expectations that USA interest rates will rise soon.
"It's clear from the Fed's actions this year that it is aware of global risks, the impact of its own actions on those risks and any potential blow back to the US economy and of the impact of a rising USA dollar in doing some of its work for it".