U.S. stocks jump despite Yellen inflation warning, Dow Jones gains 264 points

NEW YORK, New York – U.S. stocks advanced on Tuesday despite concerns from the U.S. Treasury about “unacceptable inflation.”

“We currently face macroeconomic challenges, including unacceptable levels of inflation as well as the headwinds associated with the disruptions caused by the pandemic’s effect on supply chains, and the effects of supply-side disturbances to oil and food markets resulting from Russia’s war in Ukraine,” Treasury Secretary Janet Yellen told a Senate Finance Committee hearing Tuesday.

The Dow Jones industrials rallied 264.36 points or 0.80 percent to 33,180.14.

The Nasdaq Composite finished with a 113.86 points or 0.94 percent gain to 12,175.23.

The Standard and Poor’s advanced 39.24 points or 0.95 percent to 4,160.67.

The U.S. dollar was sold off. The euro cruised higher to 1.0709 around the New York close Tuesday. The British pound strengthened to 1.2598. The Canadian dollar jumped to 1.2525. The Australian dollar, on the back of an RBA 50 basis points rate hike, accelerated to 0.7237. The New Zealand dollar was slightly higher at 0.6497.

The Japanese yen went against the trend, crumbling to a more than a two-decade low of 132.62. The Swiss franc too weakened, last trading at 0.9728.

Equity markets overseas mostly finished in the red.

In London, the FTSE 100 fell 0.12 percent. The German Dax declined 0.66 percent. The CAC 40 in Paris, France was off 0.74 percent.

The Australian All Ordinaries tumbled 114.50 points or 1.54 percent to 7,318.60.

In New Zealand, the S&P/NZX 50 sank 151.64 points or 1.33 percent to 11,265.70.

South Korea’s Kospi Composite dived 44.31 points or 1.66 percent to 2,626.30.

Hong Kong’s Hang Seng declined 122.23 points or 0.56 percent to 21,531.67.

In Tokyo, the Nikkei 225, going against the trend added 28.06 points or 0.10 percent to close at 27,943.95.

China’s Shanghai Composite finished a little better than flat, up 5.39 points or 0.17 percent at 3,241.76.