The Federal Reserve is injecting $8.071 billion into the financial system through today’s open market operations, and it is landing right as investors pile into a broad relief rally.
U.S. stock futures pushed higher on Wednesday after a report said Washington had handed Iran a plan that could help end the conflict.
Data from TradingView shows the S&P 500 rising by 0.8%, the Nasdaq 100 futures gaining 1%, and Dow Jones Industrial Average futures climbing 398 points, or 0.9%.
At the same time, Donald Trump was saying yet again from the Oval that he and Tehran are “in negotiations right now” and suggested Iran wants a peace deal. Trump promised that he had stepped back from his earlier threat to strike Iranian energy infrastructure “based on the fact we’re negotiating.”
Iran, however, continues to deny any direct talks with the U.S.
Reuters says the U.S. has even drafted a 15-point plan aimed at ending the war with Iran, while China has urged Tehran to enter talks. Iran has not commented on that proposal so far.
Meanwhile, oil’s Brent fell 5% to $99.30 a barrel, while West Texas Intermediate dropped 5.1% to $87.63.
Bond yields also crashed a bit as traders rotated into Treasuries. The 10-year Treasury yield was down more than 5 basis points to 4.3361% by press time. The 2-year yield fell about 6 basis points to 3.8730%, while the 30-year yield slipped 4 basis points to 4.8999%. One basis point equals 0.01%, and yields move in the opposite direction to prices.
Gold jumped as much as 2.8%, adding to a 1.6% rise in the previous session.
In crypto, Bitcoin held above $70,000 for a second straight day after first sliding $3,000 when markets reacted to Trump’s deadline.
Source: https://www.cryptopolitan.com/fed-to-inject-liquidity-treasury-bill-today/
