US Stocks Rally on Fed’s 0.25% Rate Hike, European Stocks Bounce Bank.
London, Wednesday, 02 March 2022
US Markets summary
US equities rose on Wednesday as Federal Reserve Chair Janet Yellen hinted at a 25-basis-point rate hike following the central bank's next meeting, rather than the 50-basis-point hike that some investors had expected.
After the Federal Open Market Committee's two-day meeting on March 16, Jerome Powell stated that he is "inclined to propose and support a 25 basis point rate hike."
The Dow Jones industrial average closed at 33,891, up 596 points, or 1.79 percent. The S&P 500 index increased by 80 points, or 1.86 percent, to 4,386.
The Nasdaq finished the day up 219 points, or 1.62 percent, at 13,752.
The VIX volatility index, sometimes known as the fear index, fell 7.7% to 30.74 as greater certainty about the Fed's move emerged.
Although the dollar index fell 0.06 percent to 97.35, the yield on 10-year US Treasury notes rose 10% to 1.882 percent.
Gold was down 0.92 percent to $1,927 per ounce, while silver was down 0.39 percent to $25.28.
Oil prices have continued to rise in the midst of the Ukraine-Russia conflict.
Brent crude was trading at $114.31 per barrel, up 8.9%, while US benchmark West Texas Intermediate crude was trading at $111.36, up 7.7%.
European Markets summary
Europe's major market indices ended the day with gains, reversing the previous day's losses.
The STOXX Europe 600 index increased 3.96 points, or 0.9 percent, to settle at 446.33, representing about 90% of the market capitalisation of the European market in 17 nations.
The FTSE 100 index in London rose 99 points, or 1.36 percent, to 7,429.
The DAX 30 in Germany gained 95 points, or 0.69 percent, to close at 14,000, while the CAC 40 in France climbed 101 points, or 1.59 percent, to 6,498.
In Germany, the benchmark DAX 30 ended the week with a loss of roughly 15,400 points, but a weekly gain of over 2%.
The FTSE MIB index in Italy gained 170 points, or 0.7 percent, to settle at 24,534.
The IBEX 35 index in Spain had the strongest day, climbing 132 points, or 1.62 percent, to 8,321.
According to Eurostat, the annual inflation rate in the euro area was 5.8% in February, up from 5.1 percent in January.
It also stated that energy prices were up 31.7 percent in February compared to the same month in 2021.
(Written and edited by: The Decision Maker)