After the Federal Reserve maintained interest rates at the same level for the second day in a row, giving investors hope that the central bank would stick with its current policy for the remainder of the year, stocks rose on Wednesday, recovering from a bad three months.
Up 221.71 points, or 0.67%, to 33,274.58, was the Dow Jones Industrial Average. For a brief while, the S&P 500 crossed its 200-day moving average as it increased by 1.05% to 4,237.86. As it reached 13,061.47, the Nasdaq Composite gained 1.64%.
Information technology equities saw a 2% increase, outperforming the market. Micron Technology and Advanced Micro Devices, two semiconductor firms, increased by 3.8% and 9.7%, respectively. Shares of Nvidia increased by over 3%.
As was largely anticipated, the Fed maintained rates in the range of 5.25% to 5.5%. Additionally, according to the central bank, “economic activity expanded at a solid pace in the third quarter.” The economy was expanding at a “solid pace,” according to earlier statements.
Global X portfolio strategist Damanick Dantes stated, “Given the recent rise in yields, the Fed is less likely to hike rates in December, with the prospect of raising them later to keep cutting inflation.” “The Fed’s goals have been partially attained due to tighter financial conditions since the September FOMC meeting.”
In the post-decision press conference, Fed Chair Jerome Powell acknowledged that raising rates after two meetings would be challenging, but he did not rule out a hike next month.
Source (CNBC)
