Stocks rose at an intraday turnaround on Wednesday as investors shrugged off losses. rate hike by a quarter Instead, the focus was on comments from Fed Chairman Jerome Powell, who acknowledged lower inflation.
The S&P 500 rose 1.05% to close at 4,119.21, reversing a previous decline of about 1%. Nasdaq Composite rose 2% to close at 11,816.32. Advanced Micro DevicesMeanwhile, the Dow Jones Industrial Average rose 6.92 points (0.02%) to 34,092.96.
The Fed’s latest rate hike represents a slowdown from December’s 0.5 percentage point rate hike, nodding to investors hoping the central bank will ease its aggressive tightening campaign. They were even more encouraged by Powell’s comments.
“For the first time I can say that the process of disinflation has begun, and it is showing in prices,” Powell said at a news conference after the meeting.
However, the central bank has shown no real signs of a moratorium on rate hikes, saying in a post-meeting statement that it “will continue to maintain its target range in order to achieve a sufficiently restrictive monetary policy stance to restore inflation.” We have maintained the wording that it is appropriate to raise Over time he increases to 2%. ”
Speaking at a press conference, Powell added that the Fed needs to tighten restrictions for some time and that the Fed has more work to do.
“There are still no signs the Fed is willing to cut rates in 2023,” said Bill Zox, portfolio manager at Brandywine Global. Ginger may favor the recovering side of recessions and proper bear markets.”
There have been some recent signs that inflation is easing across the economy, which the Fed acknowledged in a post-meeting statement, saying it “has eased somewhat, but remains elevated.”
Equity benchmarks were also boosted as fourth-quarter corporate earnings continued to post solid earnings. Peloton fitness equipment company Net loss narrowed year-on-year. Advanced Micro Devices Shares rose 12.6% after semiconductor company outperformed fourth quarter earnings.
Wall Street is having a good month. The S&P 500 posted its best January performance since 2019, while the technology-focused Nasdaq Composite posted its best January performance in 22 years.
