Analysts examine what next after the FOMC as the S&P 500.
ANALYSTS EXAMINE WHAT IS NEXT AFTER THE FOMC AS THE S&P 500 AND NASDAQ CONTINUE TO RISE.
As expected, the U.S. Federal Reserve increased its benchmark interest rate by 25 basis points at its first meeting of the year. By delivering a 25bps hike, the Fed slowed the pace of rate hikes after it hiked by 50bps in December and by 75bps at each of its previous four meetings.
Still, stocks rallied in the aftermath of the FOMC as Fed Chair Powell said that the central bank is seeing signs of falling inflation.
“We can now say, I think for the first time, that the disinflationary process has started,” Mr. Powell said at a press conference following the central bank’s meeting.
Although Powell also said that monetary policy is still not “sufficiently restrictive,” markets heard enough to go into a risk-on setup, allowing tech stocks to lead the charge. Better-than-feared results from Meta Platforms (NASDAQ: META) also fuelled a strong rally in stocks.
The S&P 500 closed about 1% higher while the Nasdaq Composite Index jumped 2%. Dow Jones gained less than 0.1%. The rally in stocks has continued in pre-market Thursday with Nasdaq futures up almost 1.5%.
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