US stocks gain after Fed rate hike
US stocks gained on Wednesday after the Federal Reserve raised its key rates.
By 2:42 pm EST, the S&P 500 was up 0.56% at 4,025.22. The Dow Jones Industrial Average rose 0.34% at 32,670.01. The Nasdaq Composite surged 0.83% at 11,958.37.
The US Federal Reserve raised its key interest rates by a quarter of a percentage point to tame inflation.
After a two-day meeting, the Federal Open Market Committee (FOMC) voted unanimously to increase its target for the federal funds rate to a range of 4.75% to 5%.
Earlier this month, the collapse of Silicon Valley Bank and Signature Bank in the US ignited contagion fears of banking crisis.
“The US banking system is sound and resilient,” the Fed said.
US treasury yields fell after the Fed hiked interest rates.
European stocks
European stocks surged on Wednesday for a third day in a row.
The pan-European STOXX 600 index rose 0.2%.
Germany’s DAX up 0.1% at 15,216.19. France’s CAC 40 edged up 0.3% at 7,131.12.
Britain’s FTSE 100 rose 0.4% at 7,566.84.
Bank of England is likely to raise interest rates on Thursday after British inflation climbed to 10.4% in February.
European Central Bank (ECB) chief Christine Lagarde on Wednesday said recent financial turbulence could add to “downside risks” in the eurozone. She also said that policymakers “still have ground to cover to make sure that inflation pressures are stamped out”.
Asian shares
Asian shares advanced on Wednesday, mirroring gains in global markets on Tuesday.
Hong Kong’s Hang Seng index rose 1.7% at 19,591.43. Shanghai Composite index up 0.3% at 3,265.75. Japan’s Nikkei 225 jumped 1.9% at 27,466.61.
The S&P/ASX 200 index closed 0.9% higher at 7,018.10.
Crude oil
Oil prices soared about 1% on Wednesday as the US dollar slipped to a 6-week low.
Know your inner investor
Do you have the nerves of steel or do you get insomniac over your investments? Let’s define your investment approach.
Download The Mint News App to get Daily Market Updates.
