Wall Street stocks and Treasury yields soar on Fed hawkish comments

Stocks rebound, led by tech stocks 10-year Treasury yields hit their highest level since 2019 Oil falls after gold's surge on Monday, bitcoin rises BOSTON, March 22 (Reuters) Treasury yields rose on Tuesday, dragging U.S. stocks with it, as investors digested the heightened likelihood of a quick rise in interest rates following aggressive comments from the U.S. Federal Reserve. The Nasdaq (.IXIC) led major Wall Street indexes, up nearly 2%, as investors bought declining tech stocks including Apple Inc (AAPL.O), Microsoft Corp (MSFT.O), Amazon.com Inc (AMZN.O), Meta Platforms Inc (FB.O) and Alphabet Inc (GOOGL.O).Read MoreThe Dow Jones Industrial Average (.DJI) is up 254.87 points, or 0.74%, to 34,807.86 and the SandP 500 (.SPX) gained 50.63 points, or 1.13%, to 4,511.81. Fed Chairman Jerome Powell said on Monday that the central bank could act "more aggressively" to raise rates to fight inflation, possibly by hiking more than 25 basis points in a or more meetings this year. the Fed will raise the federal funds rate by 50 basis points when politicians meet in May, up from a slightly over 50% chance on Monday. around 2000 GMT, i.e. 4:00 p.m.ET, the U.10 Treasury yield was 2.38%, hitting its highest level since 2019. The 2-year bond also rose, yielding 2.16% from 2.13%. landing for the economy is much the same as Captain Sullenberger's heroic emergency landing on the Hudson River," said Aaron Clark, portfolio manager at GWandK Investment Management in Boston, referring to the US Airways plane landed in 2009 after its engines failed. The market remains in a tug of war between a political blunder that caused a recession and a resilient economy with a strong consumer and business sector” , Clark wrote in an email. Stocks also rose in Europe. The STOXX 600 (.STOXX) gained 0.85%, after climbing in recent sessions to hit a one-month high. London's FTSE 100 (.FTSE) gained nearly 0.5% Matthias Scheiber, global head of multi-asset portfolio management at Allspring Global Investments in London, said the stock's rise could be because investors buy the decline, but that the stock rise would struggle if the United States.The 10-year yield is approaching 2.5%. "Yesterday we saw the big rise in yields and we see it continuing today over the longer term, so this is likely to put pressure on equities. It will be difficult for equities to perform in a JPMorgan takes a different view and said that 80% of its clients plan to increase their equity exposure, a record high. "With light positioning, weak sentiment and geopolitical risks likely to diminish with the time, we believe risks are on the upside,” JPMorgan strategists wrote in a note to clients. “We believe investors should increase risk in areas that have outpaced the downside such as innovation, technology, biotechnology, emerging/Chinese markets and small caps. These segments are suffering from a severe global recession which we believe will not materialize. The conflict in Ukraine continued to weigh on sentiment. Russia, U.and Britain traded allegations at the United Nations on Tuesday about the possibility of a chemical weapons attack in Ukraine, but neither produced evidence to support their concerns. Oil prices fell less than 1% on Tuesday as the dollar strengthened and it looked unlikely that the European Union would pursue an embargo on Russian oil a day after prices rose 7% and they also increased at the beginning of the session. The dollar fell on Tuesday as momentum from Powell's comments dissipated and a rise in equity markets helped add to sentiment risk.The bitcoin cryptocurrency rose around 3.25% to around $42,376, adding to gains from its intraday low of $34,324 on Feb. 24, when Russia invaded Ukraine.