Stocks open higher level after Fed announcement
Stocks advanced in the morning after the Federal Reserve said its rate hike campaign might be ending amid concerns about the stability of the global banking system.
- S&P 500 advanced 0.9%
- Dow Jones Industrial Average advanced by 0.7%
- Tech-heavy Nasdaq Composite advanced 1.4%
Other major assets on Thursday included WTI crude, down 0.7% and trading near $70.52 a barrel. Earlier this week, crude fell to its lowest level in nearly two years amid jitters over global demand and a rising dollar.
The 10-year Treasury yield was little changed, retreating about one basis point to trade at 3.48% after yields dipped following the Fed’s latest economic speculation that a rate hike is closer to completion than previously forecast.
On Wednesday, the Fed increased its target range for interest rates by 0.25%, as anticipated, pushing the Fed funds rate up to 4.75%-5%, the highest level since 2007.
Shares of Coinbase fell 16% in early trading after the company announced it had received a Wells notice from the SEC warning companies to expect possible action from the regulator.
Shares in Block, the payments company formerly known as Square, also fell sharply, falling as much as 19% after Hindenburg Research released new data about the company that showed up to 76% of the company’s accounts were from existing customers, with a variety of fraudulent schemes.
European stock futures were mixed
Meanwhile, European stock markets opened mixed as investors looked to the US Federal Reserve’s latest interest rate hike ahead of a new policy meeting by the Bank of England.
- DAX futures contract in Germany was down 0.4%
- FTSE 100 futures contract in the UK was down 0.3%
- CAC 40 in France was up 0.5%.
The central bank also cut its annual GDP outlook, saying the banking turmoil will greatly impact growth.
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