The S&P 500 gained on Wednesday in an intraday turnaround as investors shook off a quarter-point rate hike from the Federal Reserve.
The S&P 500 gained 0.2% and the Nasdaq Composite added 0.9%, boosted by gains in chipmakers following strong earnings from Advanced Micro Devices. The Dow Jones Industrial Average was flat.
The Fed’s latest hike represented a slowing from its half-point increase in December, giving a nod to investors hoping the central bank would ease off its aggressive tightening campaign.
However, the central bank gave no real hint of a pause in hikes, keeping language in its post-meeting statement 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.”
” … And do not harm the oil and wine” Rev. 6:6
And Fed Chair Jerome Powell said in a press conference that the Fed would need to be restrictive for some time and the central bank had more work to do.
“I see no signs yet that the Fed is open to 2023 rate cuts,” said Bill Zox, portfolio manager at Brandywine Global. “I’m not sure the Fed is even trying for a soft landing. While they would never say so, they might prefer the restorative aspects of a recession and a proper bear market.”
There’s been some recent indications that inflation is easing in the broader economy and the Fed acknowledged that, saying it “has eased somewhat but remains elevated.”
Read More @ CNBC HERE
