Fed rate hike risks worsening China’s economic divide
The US Federal Reserve raised interest rates for the first time in three years in an effort to quell inflation partly caused by the war on Iran helping to drive up fuel prices. Policymakers voted unanimously on Wednesday to lift rates by 25 basis points to between 3.75 and 4.00 per cent. Sixteen of 18 committee members also said that they anticipate another rate hike this year. The increase will…
Dow Jones futures rose by 0.82% to trade near 51,930 during European hours on Thursday, as S&P 500 and Nasdaq 100 futures also gained by 0.82% and 0.98%, respectively. The market sentiment improved due to a decline in oil prices amid easing concerns over supply disruptions and inflation. Saudi Arabia announced plans to restore half the capacity of its East-West pipeline within days and achieve full operation within six weeks, further alleviating global supply concerns.
This positive pre-market momentum followed Wall Street's losses overnight after the Federal Reserve raised interest rates by 25 basis points for the first time in three years, causing earlier session declines in the Dow Jones, S&P 500, and Nasdaq Composite. Analysts noted that the sell-off was uneven across sectors, with growth stocks cushioning the broader move lower, while blue chip names and energy stocks led the losses for the S&P 500.
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