Wall Street fluctuated higher on Wednesday after the U.S. Federal Reserve raised its key interest rate for the first time in over three years to fight stubbornly high inflation stemming from spiking crude oil prices during the U.S.-Israeli war on Iran. In its accompanying statement, the Fed said its decision was unanimous and more tightening is likely in the near future to effect a timelier drop in inflation.
Investors will closely parse Kevin Warsh’s comments at the press conference due to commence shortly, for detail regarding the central bank’s rationale behind today’s decision and clues regarding the path forward for interest rates. Earlier in the session, robust retail sales data suggested consumers were still spending despite an affordability squeeze due to rising prices, particularly at the gasoline pump.
Today, the Dow Jones Industrial Average .DJI .DJI rose 316.14 to 51,778, the S&P 500 .SPX .SPX gained 85.95 to 7,637 and the Nasdaq Composite .IXIC .IXIC gained 439.87 points, or 0.86%, to 26,418. Among the 11 major sectors of the S&P 500, industrials .SPLRCI .SPLRCI and technology shares .SPLRCT .SPLRCT led the gainers, while energy .SPNY .SPNY , weighed down by easing crude prices CLc1, suffered the largest percentage decline.
Advancing issues outnumbered decliners by a 1.53-to-1 ratio on the NYSE. There were 62 new highs and 235 new lows on the NYSE. On the Nasdaq, 2,637 stocks rose and 2,018 fell as advancing issues outnumbered decliners by a 1.31-to-1 ratio.The S&P 500 posted 10 new 52-week highs and nine new lows while the Nasdaq Composite recorded 44 new highs and 197 new lows.
Reporting by Stephen Culp; Additional reporting by Niket Nishant and Tharuniyaa Lakshmi in Bengaluru; Editing by David Gregorio.
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