NEW YORK (dpa-AFX) – With a relief rally, the US stock exchanges on Wednesday responded to statements by the Fed boss after another significant one rate hike reacted. The Dow Jones Industrial (Dow Jones 30 Industrial) rose 1.37 percent to 32,197.59 points. Other major indices gained even more. Although the US Federal Reserve (Fed) increased interest rates by a further 0.75 percentage points as expected, the US interest rate is now in a range of 2.25 to 2.50 percent. However, some statements by Jerome Powell encouraged investors.
In the course of the press conference, he announced a “prospective slowdown in monetary policy tightening and the transition to a ‘from meeting to meeting’ consideration,” noted the analysts Elmar Völker and Thomas Meißner from Landesbank LBBW. The financial market players apparently took this as a slight weakening of the Fed’s previously restrictive rhetoric. As a result, shares would have extended gains from early trading.
The market-wide S&P 500 increased by 2.62 percent to 4023.61 points. The technology-heavy NASDAQ 100 even rose by 4.26 percent to 12,601.47 points, which was the strongest daily increase since November 2020. However, the index had also lost significantly more ground the previous day. He also benefited from the sometimes high price gains of large tech groups according to quarterly figures./bek/he