Wall Street started the day on a positive note thanks to the continuation of talks between Ukraine and Russia, with the possibility of a neutral status for kyiv, as well as good signs from China about supporting its economy in the midst of a real estate crisis in the giant Asian.
At the beginning of the afternoon, the Fed announced the first increase since 2018 of its reference rate of a quarter of a percentage point to take it to 0.25%-0.50% per year.
“The announcement was as expected,” said Bill Northey of US Bank Wealth Management. “There was no surprise, but the Fed took a somewhat more aggressive stance on monetary policy.”
FOMC members mostly expect a total of seven rate hikes in 2022.
“There is nothing very different from what had already been integrated by the market,” said Art Hogan of National Securities.
For Hogan, investors welcomed the decline in oil prices, which are close to the levels prior to the Russian invasion of Ukraine.
Among the values of the day, the most important companies on the Nasdaq all ended in a clear rise, such as Apple (+3.15%), Tesla (+5.62%) or Meta (ex-Facebook, +6.55%).
Many Chinese companies also rose strongly, such as Alibaba (+36.76%), Pinduoduo (+56.06%) or JD.com (+39.36%).
Chinese authorities pledged on Wednesday to ensure the stability of financial markets and work to resolve the crisis in the Chinese real estate sector.
They also backed the principle of listing Chinese companies abroad, a change after months of pressure on companies present on Wall Street.
According to the China Nueva agency, China and the United States will work on a compromise to clear the horizon of Chinese firms listed in New York, currently threatened with being left out of that market.
Source: Ambito
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