Marketbites: Fed Hikes Rates Again
MARKET PERFORMANCE:
Â
Portfolio Manager Commentary:
The Dow Jones Industrial Average rose Wednesday, notching its best winning streak since 1987 as traders digested a Federal Reserve rate hike and major corporate earnings. The 30-stock index extended its rally to 13 days, an advance it hasn’t achieved since January 1987. If the index rises for 14 straight days on Thursday, it will match the longest streak ever going back to June 1897. That was roughly one year after the Dow was created in May 1896.
The Federal Reserve raised rates to their highest level in more than 22 years after passing through a much-anticipated quarter point hike at the conclusion of its meeting. More on that below. The Fed next decides on rates on Sept. 20. Bank shares including Wells Fargo gained after the comments as traders bet that the economy could skirt a recession if the Fed stays on hold.
Elsewhere, Google-parent Alphabet rose about 5.8% as cloud revenue growth helped propel the company to a better-than-expected quarter. Also, Dow component Boeing gained 8.7% after reporting a second-quarter beat following a rise in commercial aircraft deliveries. However, not all earnings news was positive as Microsoft slid 3.7% a day after reporting slowing cloud revenue growth.
Chart of the Day:
The Federal Reserve resumed lifting interest rates Wednesday with a quarter-percentage-point increase that will bring them to a 22-year high. The unanimous decision to raise the benchmark federal-funds rate to a range between 5.25% and 5.5% ended a brief pause in rate increases last month as officials debate whether they have done enough to combat inflation. It is the 11th increase since March 2022, when they lifted rates from near zero. The Fed made minimal changes to its postmeeting statement, offering no new guidance about its future policy plans.
Source: WSJ
What else is happening:
China's soaring youth unemployment threatens Xi's economic vision - read here
Prosecutors want SBF jailed before fraud trial - read here
UFOs are a common sight , former military official tells congress - read here
Invest With Us
Download and invest with us in the Avidus app! Avidus is your "in" to directly owning a portfolio of remarkable companies. Leave Wall Street & Robo-advisors behind!
