New York, Wednesday, 6 July 2022
US equities fluctuated between gains and losses on Wednesday, closing higher as the Dow gained 69 points, the S&P 500 gained 0.4 percent, and the NASDAQ contributed to its previous session's excellent performance.
While analysing the most recent FOMC minutes, investors' anxiety levels remained high due to persistent worries about the future of the economy.
The importance of the Fed's credibility was emphasised by policymakers at the Fed, who also believed that a more restrictive attitude may be taken if inflation became sticky. They also predicted that a rate increase of 50 or 75 basis points would occur in July.
Although the June ISM Services PMI and the JOLTS report beat expectations, the data did little to improve investor sentiment or calm their concerns about a potential recession.
According to the most recent predictions from Bloomberg Economics, there is now a 38% chance that the US will have a recession in the following year.
(Reporting by: The Decision Maker – Finance editors)