US stock markets benefitted from a seemingly dovish turn from Federal Reserve Governor Jerome Powell, who announced in a press conference he would be recommending just a 25 basis point or 0.25% increase in the cash rate in March. This was a surprise given the market and many experts had been predicting a 50 basis point jump with the events in Ukraine clearly rattling policymakers.
The result was a 1.8% gain in both the Dow Jones and S&P 500 driven by a rally in financials, along with a 1.6% gain in the Nasdaq.
The President’s State of the Union address was well-received, highlighting an ambitious investment program and banning Russian planes from domestic airspace.
The oil price rallied despite OPEC+ agreeing to an expansion in production whilst retailer Nordstrom (NYSE: JWN) gained more than 37% after reporting a 23% jump in revenue as its omni-channel sales program continues to grow.
Elsewhere, Ford (NYSE: F) announced it would be splitting its business into an EV and fuel focused unit after reporting a 20% reduction in quarterly sales, shares gained 8%.
Back home on the ASX, the S&P/ASX 200 (ASX: XJO) is expected to follow this positive lead from US markets to open higher this morning. For a round-up of the latest news, check out my ASX 200 morning report.
