- February 2, 2023
- Posted by: Bastion team
- Category: World News
U.S. stocks were mixed on Wednesday afternoon after the Federal Reserve announced its latest interest rate increase, a move which brought the Fed’s benchmark policy rate to the highest level since October 2007.
In its statement the Fed noted inflation pressures but said inflation “remains elevated” as price pressures prove persistent across the economy.
The central bank also suggested Wednesday’s rate hike will not mark the end of its campaign, saying the Fed, “anticipates that ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time.
The statement added futures increases, “will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments.”
Following the Fed’s announcement of a 0.25% rate hike, its smallest increase in nearly a year, the S&P 500 (^GSPC) was down 0.2%, while the Dow Jones Industrial Average (^DJI) sank by 0.7%. The technology-heavy Nasdaq Composite (^IXIC) turned into green figures, rising 0.2%.
On Tuesday, stocks capped off a strong start to the year, with the S&P 500 logging its best January since 2019 while the Nasdaq 100 enjoyed its strongest January rally since 2001, gaining over 10%.
Earnings season also remains in full force, with another disappointing quarter from Snap (SNAP) out last night garnering the most…