Every $1 Trillion Of Stimulus Will Add $4-$5 To EPS, Sentiment And Rising Yield Are Lifting The USD Which In Turn Put Pressure On Gold

The U.S. President Joe Biden's $1.9 trillion stimulus package on the weekend helped sentiment but had long been anticipated. Ironically too it helped to urge on the recent spiking of bond yields, which put pressure on stocks.

"With the Senate's passage, we expect growth momentum to accelerate and forecast global GDP growth will surge to a 7.5% annualised rate in the middle quarters of the year," Reuters Thompson quoted JPMorgan economists as saying in a note.

"Every $1 trillion of fiscal stimulus adds around $4-$5 to EPS, implying 6-7% upside for the remainder of the year."

The U.S. dollar continued higher on the back of rising bond prices, the dollar index DXY is higher at 92.12 comparing to Friday close.

Markets are worried about the sudden rise in yields, there was an expectation that Powell would hint at some plan to prevent the long-end of the curve from rising further. In response, stocks and the commodity like Gold as a whole down on higher rates and a stronger dollar.