Part of the morning rally in stocks is due to expectations that the Fed will keep rates steady but give a strong indication of a cut in September.
“The Committee views the risks to achieving its employment and inflation objectives as continuing to shift toward better equilibrium,” the Federal Reserve said.
Reuters
Wall Street rises this Wednesday while Investors digest the Federal Reserve’s monetary policy decision that although kept interest rates at the current level gave signs that the cuts will begin shortly. The New York stock market is gaining strongly, led by the technology sector, which as a whole is up 3%.
He S&P 500 rises by 1.9%, while the Nasdaq Composite increases by approximately 3%. Dow Jones Industrial Average rises 0.8% and Russell 2000 1.3%.
Advanced Micro Devices (AMD) climbs more than 8% after second-quarter results beat consensus estimates. AI darling Nvidia gains 8.8% on AMD’s report and after being named one of the top performers in the industry. top picks by Morgan Stanley. Microsoft shares, on the other hand, fell almost 2% due to a disappointing performance by its cloud business.
Fed decision
The Federal Reserve (Fed) announced that it maintained This Wednesday, its reference interest rates will remain unchanged and claimed to have made “some further progress” in its fight against inflation.
Federal Reserve FED
Your favorite measurement of Inflation slowed to an annual rate of 2.5% last monthwhile economic growth remained strong and the labor market has balanced out.
“In recent months there has been some further progress towards the 2% inflation target set by the Committee”the Fed said. The decision represents a slight change in tone from June, when the central bank said “modest additional progress” had been made.
“The Committee views the risks to achieving its employment and inflation objectives as continuing to shift toward better equilibrium,” the Federal Reserve said, adding that it is “aware of the risks on both sides.”
Fed Chairman Jerome Powell is scheduled to address reporters later on Wednesday and analysts expect him to hint at the possibility of an interest rate cut at the Fed’s next meeting in September.
Source: Ambito
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