On Friday, despite the poor results of the technology sector, the stock market closed higher: the Dow Jones at 32,861.80 points (+2.59%), the Nasdaq at 11,102.45 units (+2.87%) and the S&P 500 at 3,901.06 (+2.46%).
Stocks have risen despite some dim reports from big tech companies, with the S&P and Nasdaq posting two straight weeks of gains. The Dow is up 14% this month heading into the last day of trading.
Corporate earnings have been mixed this month, with investors hoping new data on inflation and consumer confidence will convince the Federal Reserve to slow the pace of rate hikes after its meeting this week. One piece of information that generated distrust in investors was inflation in Europe, which reached a new record of 10.7% in October.
The Fed is preparing to raise the reference rate by 0.75 percentage points. It would be the fourth consecutive hike of this magnitude in interest rates, and would take Fed rates, currently between 3.00 and 3.25%, to 3.75-4.00%.
A vast majority of market players are betting on a rate hike of that magnitude, and the rest expect a half percentage point increase, according to CME Group.
The decision will be announced Wednesday in a statement. Then, as is traditional, Fed Chairman Jerome Powell will give his press conference.
Source: Ambito
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