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The Dow Recovers By 400 Points, Recovering Some Of The Sell-Off That The Fed Caused On Wednesday: Constant Updates

While investors predicted the Federal Reserve would stop raising interest rates, stocks recovered on Thursday after the Dow Jones Industrial Average dropped by 500 points.

By 403 points, or 1.2%, the Dow Jones Industrial Average increased. The S&P 500

grew by 1.5%, while the Nasdaq Composite increased by 2.4%.

With the SPDR Technology Select Sector (XLK) rising 2.7%, technology companies were the standout performers as investors cut their bets on a Fed rate hike and Treasury yields fell. The category, which was the most severely affected area of the market as the Fed raised rates nine times in a row in roughly a year, included Microsoft, Nvidia, and Apple as some of the largest gainers. Investors are shifting back into tech companies as a result of this month’s swing in interest rates lower.

Stock prices were impacted by the Fed’s decision and Chair Jerome Powell’s remarks after the policymakers’ two-day meeting on Wednesday.

As predicted, the central bank increased interest rates by 25 basis points. With the phrase “ongoing rises” removed from its statement, it also made a suggestion that its drive to tighten monetary policy to combat inflation might be coming to an end. While Powell stated that “rate reduction are not in our base scenario” for the balance of 2023, traders had factored in the possibility of a rate decrease this year.

Given the current state of the banking industry and other economic statistics demonstrating that the markets are being affected by more than just Wall Street issues, Greg stated, “The Fed has to really thread the needle carefully CEO of AXS Investments, Bassuk.

We’re [also] observing an issue on Main Street where it’s becoming more difficult for customers to borrow money and other downstream effects that are making it difficult. Not just at the boardroom table, but also at the kitchen table, as we usually say,” Bassuk continued.

Source (CNBC)

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