Although it was a volatile day for equities following conflicting comments from two important members of the US Federal Reserve, key global benchmarks managed to reach new heights on Monday. Remarks from William Dudley of the New York Fed echoed last week’s hawkish sentiment from Fed Chair Janet Yellen, indicating that any failure to keep tightening monetary policy could hurt the economy.
However, Chicago Fed President Charles Evans suggested during his own remarks that the Federal Reserve could delay any further tightening of interest rates should conditions merit such a response. The resulting reaction in equities was positive after the futures selloff that transpired after Dudley’s observations. Even though there are an abundance of concerns regarding the valuations of major technology companies, the rebound in Alphabet, Apple, Amazon, and Facebook helped spur gains in the Dow, with futures extending gains in early European trade.