Situs Slot Gacor Slot Gacor Gampang Menang Situs Slot Gacor

Wall Street rally closes higher after Fed statement

Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, USA, June 13, 2022. REUTERS / Brendan McDermid / File Photo

Sign up now for FREE unlimited access to

  • The Fed announces the largest interest rate increase since 1994
  • Powell: do not expect 75 bps to be the norm
  • The S&P 500 snaps five sessions with a losing streak
  • Dow up 1%, S&P 500 up 1.46%, Nasdaq up 2.50%

NEW YORK, June 15 (Reuters) – The S&P 500 rose Wednesday to take a five-session loss following a Federal Reserve policy announcement that raised interest rates to market expectations while the central bank tries to fight rising inflation without triggering a recession.

The Federal Reserve raised the target interest rate by three quarters of a percentage point, the largest interest rate increase since 1994, and estimates a declining economy and rising unemployment in the coming months. read more

Shares were volatile after the announcement, before definitively turning higher after Chairman Jerome Powell said at his news conference that either 50 basis points or 75 basis points were most likely at the next meeting in July, but that he did not expect a rise of 75 basis points to be normal.

Sign up now for FREE unlimited access to

“When the Fed chairman said there could be a corresponding increase of 75 basis points at the next meeting, that was when the market rose,” said Sam Stovall, investment strategist at CFRA Research in New York.

“It’s a kind of confidence statement that the Fed is finally awake to the inflation problem and is willing to take a more aggressive stance.”

The Dow Jones Industrial Average (.DJI) rose 303.7 points, or 1%, to 30,668.53, the S&P 500 (.SPX) rose 54.51 points, or 1.46%, to 3,789.99 and the Nasdaq Composite (.IX0IC. 2.5% to 11,099.16.

The losing streak of five sessions for the S&P 500 was the longest since the beginning of January.

Investors had quickly raised expectations that the central bank would raise interest rates by 75 basis points (bps) in recent days after a stronger-than-expected reading of consumer prices on Friday. It had previously been widely expected that the Fed would announce a 50 bps increase, a rapid fluctuation in expectations that has triggered tremendous sales across world markets. read more

Expectations of a larger increase were forecast changes from analysts at major banks, including those at JP Morgan and Goldman Sachs, who both estimated a 75 bps rate hike from the Fed. Investors have since rushed to retake the effort. read more

Growing concerns about rising inflation, higher borrowing costs, declining economic growth and corporate earnings have kept equities under pressure for most of the year.

On Monday, the benchmark index S&P 500 (.SPX) marked a decline of more than 20% from its last record high, confirming that a bear market started on January 3, according to a common definition.

Earlier economic data on Wednesday showed that US retail sales unexpectedly fell 0.3% in May as purchases of motor vehicles fell due to shortages and record high petrol prices pulled spending away from other goods, well below expectations requiring a 0.2% increase. read more

“Most of the incremental data points have been negative, even this morning the retail sales figures were weak, so just in the last four business days you have had a number of negative financial figures,” said Ellen Hazen, marketing strategist, FLPutnam Investment Management in Wellesley, Massachusetts. .

Among individual stocks, Citigroup (CN) rose 3.52% as one of the best results on the S&P 500 banks index (.SPXBK) which rose 1.60%. Nucor Corp (NUE.N) rose 2.41% after forecasting a positive profit for the current quarter due to strong demand for steel.

Boeing Co (BA.N) increased by 9.46% after China Southern Airlines Co Ltd (600029.SS) conducted test flights with a 737 MAX aircraft for the first time since March, a sign that the return of the jet in China may be approaching as demand rises. . read more

Volume on US stock exchanges was 13.40 billion shares, compared to the average of 11.79 billion for the entire session over the last 20 trading days.

Progress issues outperformed falling issues on the NYSE by a ratio of 2.80 to 1; on the Nasdaq favored a ratio of 2.78 to 1 advance.

The S&P 500 posted 1 new 52-week highs and 41 new sediments; The Nasdaq Composite recorded 12 new highs and 258 new lows.

Sign up now for FREE unlimited access to

Additional reporting from Bansari Mayur Kamdar in Bengaluru; Editing Aurora Ellis

Our standards: Thomson Reuters Trust Principles.

Source link

Back to top button