After the Federal Reserve (Fed) hiked interest rates four times by 3 yards, the four major US equity indices fell at close of trading on Wednesday (2nd). Fed Chairman Powell revealed a hawkish tone at the meeting, although he suggested the pace of tightening may be slowed in the future, he won’t stop raising interest rates too soon and the final rate will be higher than estimated. previously,Dow JonesThe final dive more than 500 points,that finger、half shareEverything fell by more than 3%.
S&P 500 IndexIt closed sharply at 2.5%, which was the worst day since January 2021, when the Fed announced its interest rate decision.
The Federal Reserve (Fed) concluded its two-day interest rate decision meeting on Wednesday, announcing another 3-yard hike after the meeting, continuing the aggressive tightening pace of the past three meetings.
Fed chairman Powell expected after the meeting that the next two meetings could discuss slowing the pace of tightening, but he also refuted the idea that the Fed would soon suspend interest rate hikes, he reiterated. determination to fight inflation and said the final interest rate will be higher than expected and the path of the economic soft landing may narrow.
US equities initially rose after the Fed announced a rate hike after the Fed’s statement hinted at the possibility of a policy change, before cutting gains on Powell’s hawkish stance on inflation, before closing. sharply to the downside.
The big tech stocks bear the brunt, Amazon, Netflix and Meta all closed down nearly 5%, Apple and Tesla closed down 3.7% and 5.6% respectively, the yield on US bonds. 2-year, which is more sensitive to interest rates, rose, and the dollar strengthened.
The Fed’s decision comes after strong employment data. US ADP reported 239,000 new jobs in October on Wednesday, exceeding expectations, noting that labor demand remains resilient even as the Fed works to cool the economy and a strong labor market is rapidly pushing wages higher. and fueling inflation, making it imperative for the Fed to address a positive outlook Pressure to tighten policy.
In terms of political and economic news, the Biden administration has announced that it will provide more than $ 13 billion in subsidies to help low- and middle-income groups in the United States reduce energy costs by subsidizing electricity bills and improving energy efficiency. energy efficiency.
Additionally, the U.S. Department of the Treasury announced that it will issue $ 96 billion of long-term bonds in next week’s quarterly refinancing operations, but the Treasury Department is still considering implementing bond buybacks to improve liquidity in the next week. US Treasury market and has not yet made a decision. . Liquidity in the US Treasury market has worsened this year, partly due to increased volatility caused by the Fed’s aggressive interest rate hikes.
In terms of the epidemic, data from Johns Hopkins University in the United States shows that the number of confirmed cases worldwide has so far exceeded 630 million and the death toll has exceeded 6.59 million. More than 12.8 billion doses of the vaccine have been administered in 184 countries around the world.
The performance of the four major US equity indices on Wednesday (2nd):
Continuing the update …
The data is updated before the deadline, please refer to the actual quotation
