Stock Market News Today: Stocks Rally, Tech Surges After Fed Leaves Rates Unchanged
The United States stocks popped on Wednesday with the Federal Reserve voting to hold up the rate of interest at its highest range in the last 22 years at the end of the recent policy meeting and the investors betting that the central bank is possibly done with its hiking.
The S&P also increased more than 1%, while the Dow Jones International Average profited approximately 0.7%. Simultaneously, the tech-giant Nasdaq led profits, which soared 1.6%.
The Federal Reserve had held rates which were steady in a range of 5.25% to 5.50% as the central bank awaits to see how the aggressive credit tightening campaign is filtering through the United States economy.
When they were questioned about the earlier projection by the central bank for yet another hike of rate this year, Powell noted the summary of the Economic Projections is “not a promise or plan of the future.”
Treasury yields have edged lower, with the ten year trade going below 4.8%. Yields have ticked more down earlier this Wednesday after the quarterly refunding update of the US Treasury revealed that the Treasury is going to auction $112 billion in debt in the upcoming week, which is roughly in line with the expectations of Wall Street.
Stock investors were keeping an eye on this announcement a lot more closely than the regular time, given how the update of August has contributed to the recent yield run-up. Bets on the future hike of rates have shifted on this news. As per the CME FedWatch Tool,
“investors have priced in a 73% possibility that the Fed is holding rates steady throughout the January meeting.”
A day before, the markets had priced in only a 59% chance that the rates may be held constant through the whole conference.
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