Friday, March 29, 2024

Federal Reserve frustrates stock markets..and Dow Jones loses 270 points.

Date:

Federal Reserve frustrates stock markets..and Dow Jones loses 270 points.

The US Federal Reserve decided to raise its funds rate by a quarter of a percentage point at its tenth meeting, reaching a range of 5%-5.25% for the first time since 2007, and the bank’s president reignited. Interest rates were cut by the end of the year, so stock indexes erased their modest gains, with the Dow Jones Industrial Average trading the day down 0.80% to 270 points.

Shares rallied in the first minutes of a press conference following the announcement of the bank’s decision to raise interest rates, with Powell hinting at the possibility of stopping hikes at the current level, but they fell sharply when the bank’s chief ruled out anything to do with it. Markets are currently reflecting a move to cut interest rates in 2023.

The Nasdaq index, which is more sensitive to interest rate changes, also fell by nearly half a percent during Wednesday’s trade, which investors have been waiting for since March, which saw the last meeting of the world’s largest central bank. The S&P 500 index’s loss exceeded two-thirds of a percent.

Powell insisted that the road to getting the inflation rate back to its target of 2% was still long, but he promised journalists and millions who followed him the safety of the US banking system. Less than two months.

In Europe, European shares rose ahead of the Federal Reserve’s decision on Wednesday, as investors returned to optimism after the Federal Reserve raised interest rates, signaling a pause in a 14-month cycle of currency tightening. After the last day..

See also  OPEC Plus production cuts could lead to significant supply shortages

Despite the reality of European market expectations in this regard, most dealers did not wait to rule out this year’s interest rate cut, which led to a rise in the Stoxx 600 index of European shares. , following a sharp sell-off in the previous session. .

Oil and gas companies rose 0.6%, recovering from losses in Tuesday’s session, to top the index’s gainers.

In a related vein, losses in oil prices accelerated after the announcement of the Federal Reserve’s decision, with growing expectations that the US economy will enter recession, continuing its sharp losses from the previous session.

Brent crude futures fell nearly $3 or 4% to $72.33 a barrel, the lowest level for crude oil since December 2021.

Brent crude fell to $71.70 a barrel, its lowest since March 20.

Also, US West Texas crude lost more than $3, or 4.3%, to settle at $68.60 a barrel, the lowest since March 24, after hitting $67.95 at the lowest moments of the day.

Nadia Barnett
Nadia Barnett
"Award-winning beer geek. Extreme coffeeaholic. Introvert. Avid travel specialist. Hipster-friendly communicator."

Share post:

Popular

More like this
Related

iGym and the Youth Gym Culture in Dubai

In the dynamic city of Dubai, a new trend...

The Future of Gambling in the UAE: Economic, Legal, and Social Dimensions

The United Arab Emirates (UAE) is on the brink...

Comparing the Best Trading Platforms in the UAE: Features and Benefits

Trading commodities, currency pairs, ETFs, and other investment vehicles...

Evgenia Timofeenko: What does it mean to be an investor in the hotel business?

Investors are always interested in finding effective objects for...