Bond markets took a beating on Friday following stunning reports on jobs and services, catching speculators very short of dollars and sending the currency sharply higher.
The Dow Jones Industrial Average rose 6.92 points, or 0.02%, to 34,092.96, the S&P 500 gained 42.61 points, or 1.05%, to 4,119.21 and the Nasdaq Composite added 231.77 points, or 2%, to 11,816.32.
Interest-rate futures indicate market expectations for a 25 basis point (bp) hike from the Federal Reserve to take the Fed funds rate window to 4.5%-4.75%.
Gross domestic product increased at a faster-than-expected 2.9% annual rate in the fourth quarter of last year as consumers boosted spending on goods, the US Commerce Department said.
The NYSE, which is owned by Intercontinental Exchange Inc, said a "system issue" prevented the opening auctions in a subset of its listed securities. The stocks began trading without an opening print, causing erroneous prices that the exchange said will be declared null and void.
A spate of NYSE-listed stocks were halted at the top of the session due to an apparent technical malfunction, which caused initial price confusion and prompted an investigation by the US Securities and Exchange Commission (SEC).
Wall Street stocks ended lower on recession worries, while European shares recorded their biggest daily selloff of the year and a global stock index posted a third straight day of declines.
There were even rumours the BOJ might hold an emergency meeting on Monday as it struggles to defend its new yield ceiling in the face of massive selling.
US consumer prices fell in December for the first time in more than 2-1/2 years as prices fell for gasoline and other goods, suggesting inflation was on a sustained downward trend.
The Nikkei ended the day up 0.01% at 26,449.82, after touching 26,547.61 for the first time since Dec. 27. The markets initially tracked overnight Wall Street gains amid bets that a mitigation in the pace of US consumer price gains will allow the Federal Reserve to dial back the pace of its rate hikes
Japan's Nikkei wobbled 0.2% lower. Bonds were bought around the world overnight and the US dollar wavered, to touch a seven-month low at $1.0776 per euro.
Longer-dated treasury yields fell a day before release of December's US consumer price index (CPI) data as investors bet inflation is on a sustainable downward path that could lead the Fed to slow rate hikes or cut rates.
In his first public appearance of the year, Powell said at a forum sponsored by the Swedish central bank that the Fed's independence is essential for it to battle inflation.
Investors are awaiting comments Tuesday from Fed Chair Jerome Powell, who some strategists expect could say more time is needed to show inflation is under control.
