July 6, 2022

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Stocks rise as investors digest Fed decision

Stocks rise as investors digest Fed decision

US stocks swung between gains and losses after the Federal Reserve said it approved raise interest rates half a percentage point.

The S&P 500 recently gained 0.6%, while the Dow Jones Industrial Average rose 0.7%. The Nasdaq Composite Index advanced 0.2%.

Federal Reserve officials announced price decision, Along with plans to begin shrinking the central bank’s $9 trillion asset portfolio next month, at the conclusion of the two-day policy meeting on Wednesday. Both announcements were highly anticipated.

Investors are now looking for insights into how Fed Chair Jerome Powell plans to guide the central bank through the rest of its planned interest rate increases. With stocks and bonds volatile recently, many investors are concerned that the pace at which the Federal Reserve plans to tighten monetary policy will cause the markets to rally. Others wrestle with fears that the central bank, which is raising interest rates quickly in an effort to de-inflationmay inadvertently push the economy into a recession.

Investors will get a chance to hear from Mr. Powell later Wednesday afternoon, when he addresses reporters.

This is the question markets are dealing with: Where is the Fed headed? Is this series of price increases of 5% or 6% really going to end in cooling the economy? Karsten Brzeski said,

Eng Group‘s

Global Head of Macro Research.

The The US economy is still going strong Despite the fact that it shrank in the first quarter of this year, Treasury Secretary Janet Yellen said on Wednesday at the Wall Street Journal’s CEO Board summit in London.

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Consumer stocks were among the biggest losers in the market on Wednesday. The group took a hit this year as investors facing higher interest rates turned away from companies with higher valuations. Among technology stocks,

Amazon.com

And

Netflix

All of them lost more than 2%.

Corporate earnings also spurred volatility in the market on Wednesday.

Airbnb

The company’s shares rose 1.7 percent after the company said it expected to publish its shares First full year net profit this year.

Starbucks

Added 7.7% after the coffee chain said Profits and sales grew in the last quarter.

Lift

Shares fell 33 percent after the passenger carrier said it would do so Invest in the current quarter To ensure that it has enough drivers and grows its car booking service platform, this raises investor concerns as spending impacts operating profit.

Federal Reserve Chairman Jerome Powell indicated Thursday that the central bank is likely to raise interest rates by half a percentage point at its May meeting. Photo: Samuel Corum / Getty Images

while, Government bond prices fellThe 10-year Treasury yield was 2.968%, compared to 2.957% on Tuesday. Bond yields and prices move in opposite directions.

The bond market has been hit by Worst defeat in decades As investors grapple with accelerating inflation and the prospect of rapid interest rate increases by the Federal Reserve. This has added to the turmoil in the stock market this year.

Traders worked on the floor of the New York Stock Exchange on Monday.


picture:

Spencer Platt / Getty Images

Oil prices rose after the European Union Proposed ban Russian crude imports within six months and a ban on imports of refined petroleum products from Russia by the end of the year. And US crude oil rose in the latest rise by 5.6 percent to 108.19 dollars a barrel.

Higher oil prices helped push up energy stocks. The S&P 500 energy sector rose 1.5%.

Abroad, stocks were mostly low. The Stoxx Europe 600 Continental Index lost 1.1%. Hong Kong’s Hang Seng fell 1.1%, and South Korea’s Kospi fell 0.1%. Markets in mainland China and Japan are closed for a holiday.

Write to Caitlin Ostroff at [email protected] and Akane Otani at [email protected]

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