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.
