Wall Street has a positive view of rate hikes
The Fed rate hike is the dominant topic on Wall Street Wednesday. According to the latest inflation data, traders were expecting a significant jump and are therefore not very surprised. After days of heavy losses, the Dow, but especially the Nasdaq, are up.
The largest rise in US interest rates since 1994 was welcomed by US investors on Wednesday. of the Dow Jones gained one percent to 30,669 points. The one with a high technological content Nasdaq advanced 2.5 percent to 11,099 points and the broad S&P 500 it increased by 1.5 percent to nearly 3790 points.
The US Federal Reserve’s 0.75 percentage point hike in the benchmark interest rate is at the higher end, but still in line with expectations, said portfolio manager Thomas Altmann of investment advisor QC Partners. . The same goes for the Fed’s interest rate predictions, the so-called dot plots. “The points also have a positive side to offer: despite the inflationary shock, long-term interest rate expectations remain constant.”
The US currency, on the other hand, received only momentary momentum from the Fed’s decision Dollar index it fell nearly 0.5% to 104.82 points in the evening (CEST) after rising to a 19-and-a-half-year high in immediate response to the rate hike.
Cryptocurrencies continue to slide
In the case of cryptocurrencies, however, the descent has continued. Bitcoin At times it dropped by nearly 9% and stayed just above the psychologically important $ 20,000 mark. Ethereum it slipped up to 15 percent, and at $ 1012.68 it was as cheap as it was a year and a half ago. Analyst Jochen Stanzl of online broker CMC Markets said he thinks it’s possible that Celsius, a struggling cryptocurrency lender, will need to sell computing on a massive scale to make collateral payments. “The situation does not seem to calm down.”
Meanwhile, the gloomy outlook of the International Energy Agency (IEA) has temporarily put an end to the rise in oil prices. Due to rising interest rates, the appreciation of the dollar and a possible slowdown in the economy, the authorities are warning of a decline in demand. The variety of US crude oil WTI then it fell by 2.5 percent to $ 115.91 per barrel (159 liters). However, the supply is still scarce, said analyst Jeffrey Halley of brokerage firm Oanda to consider. “I don’t see any change here unless the global economy goes into recession.”
One of the Wall Street winners was Hertz. Shares of the car rental company were up five percent. The company announced a new $ 2 billion share buyback program.
Newspapers were also in demand Vimeo, which increased by 7.1%. The streaming platform, known for music videos, reportedly increased sales by 16% in May and average revenue per user by 11%.
Hopes that the 737 MAX model would be licensed for flight operations in China were met Boeing. Shares of the aircraft manufacturer gained 9.4%. Speculation was fueled by a China Southern test flight. It was the first since the airline’s old 737 crashed in March.