Stocks gain as yields retreat ahead of Fed rate decision
On Wednesday, global stocks initially fell following the US Federal Reserve's decision to raise interest rates for the first time in three years. The Fed increased rates by 25 basis points, signaling more hikes to come, in an attempt to combat inflation partly fueled by higher oil prices. New Fed chair Kevin Warsh joined a unanimous vote for this rate increase.
Wall Street's key indices, including the Dow Jones Industrial Average, S&P 500, and Nasdaq Composite, finished lower, with energy and financials significantly impacting performance. The US 2-year and 10-year bond yields also rose as a result of the Fed's decision. Oil prices declined due to reports of Saudi Arabia supplying additional crude via Oman after pipeline damage from drone attacks.
Currency markets saw the dollar strengthen against the euro, yen, and the dollar index, while gold prices dropped.
Written by urgent.news from CNA - Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
