London, Wednesday, 14 December 2022
On Wednesday, the Dow sank 150 points, the S&P 500 fell 0.6%, and the Nasdaq fell 0.7% as investors processed the most recent monetary policy decision and Jerome Powell's following comments.
The federal funds rate was increased by the Federal Reserve by 0.5 percentage points, reaching a 15-year high of between 4.25% and 4.5%.
The federal funds rate is now expected to peak at 5.1% next year, with rate reduction not expected until 2024.
At the news conference that followed the decision, Powell stated that although interest rates would likely remain high for a while, the central bank is almost at the end of its tightening cycle.
On the stock market, Tesla dropped more than 2% after Goldman Sachs lowered its price objective for the stock of the manufacturer of electric vehicles.
After the Atlanta-based airline disclosed that it anticipates doubling its profit in 2023, shares of Delta Air Lines increased by about 3%.
(Report by: The Decision Maker - Finance editors)