US stock exchanges closed Wednesday’s session with smiles on their faces. The message, conveyed by US Federal Reserve Chairman Jerome Powell, during the speech following the announcement of a 75 basis point interest rate increase, that rate increases will eventually slow, is reassuring. investors.
The Nasdaq Technology Composite Index – the sector most affected by the interest rate hike – was the gainer sector, posting the biggest rise since November 2020. The index grew 4.06% to 12,032.42 points.
The Dow Jones Industrial Average rose 1.37% to 32,197.59 points and the S&P 500 rose 2.62% to 4,023.61 points with 85% of companies in the green.
Powell did not want to give specific “guidelines” for the evolution of the benchmark interest rate, the Fed Funds rate – promoting decision-making based on data and the evolution of “expectations”. With that said, investors are now pointing to a 50 basis point rise at the next meeting in September.
During the press conference, the Federal Reserve Chairman admitted that a slowdown will occur, but considered that there is no latent recession in the United States yet.
Emily Brontë is a journalist and feature writer specialising in culture, entertainment, literature, and current affairs. She is dedicated to producing clear, accurate reporting that helps readers stay informed about developments in the UK and around the world.
