The S&P 500 and the Nasdaq Composite index accelerated gains after the Fed Governor Powell said 75 basis points rate increase was not discussed in the policy meeting.
The Federal Reserve lifted its key rate by 50 basis points and announced a plan to shrink its portfolio of Treasurys and agency debts. The rate hike was the largest since May 2000.
U.S. stocks advanced and investors added positions ahead of the rate decision this afternoon. Investors are looking beyond a widely anticipated 50 basis points interest rate hike and hoping that the inflation has peaked.
CVS
CVS
U.S. stock indexes in volatile trading advanced as anxious investors await the Fed's rate hike decision tomorrow and comments indicating how far the central bank is willing to go by the year's end.
Financial markets around the world are preparing for rate hikes as lagging central banks in the U.S., U.K,, EU, and Australia lift rates. Central banks after a decade of supporting negative rates are preparing to hike rates as a 4-decade high inflation rages around the world.
Market indexes reversed losses in the final hour of trading lifting the Nasdaq 1.6% and the S&P 500 0.6%. 10-year U.S. Treasury bond yield rose to 3%. European and Asian markets struggled with rising prices and slowing economic activities.
London-based HSBC is facing pressure from its largest shareholder Ping An to break itself up. China-controlled insurance company Ping An suggested a plan to separate its Asian operations from the West.
HSBC
HSBC
U.S. stock futures showed negative bias as investors reprice assets with economic recession in view. The Fed is scheduled to release its monetary policy statement on Wednesday. Investors are looking ahead to earnings from MGM Resorts, Expedia, Lyft, Uber, and Starbucks.