NEW YORK, July 27 (Reuters) – The Nasdaq jumped more than 4% on Wednesday in the biggest daily percentage gain since April 2020 as the Federal Reserve raised interest rates as expected, and Fed Chair Jerome Powell’s comments eased some concerns Investors regarding the pace. Rising prices.
Microsoft quarterly reports (MSFT.O)Alphabet Corporation (GOOGL.O) Others added to today’s optimistic tone.
S&P 500 Growth Index (.IGX) It jumped 3.9% and also posted its biggest one-day percentage gain since April 2020. Technology and growth stocks, whose valuations depend more on future cash flows, were among the hardest hit this year.
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The S&P 500 closed at its highest level since June 8 with the technology sector (.SPLRCT) Which gives the indicator its biggest boost.
The Federal Reserve, in a statement after its two-day meeting, raised its benchmark interest rate by three-quarters of a percentage point. The move came on top of a 75 basis point hike last month and smaller moves in May and March, in an effort by the Federal Reserve to cool inflation. Read more
Powell’s comments at a news conference after the statement gave some investors hope that the pace of rate hikes would slow.
Equity investors were concerned that aggressive increases by the Federal Reserve could push the economy into a recession.
“He did not commit to any specific rate hike at the September meeting,” said Jim Poulsen, chief investment analyst at The Leuthold Group in Minneapolis. Read more
It was a “quiet statement, coming on the heels of a day when I saw some earnings and returns that were better than expected, albeit very moderate expectations,” said Peter Toze, chairman of Chase Investments in Charlottesville, Virginia.
Dow Jones Industrial Average (.DJI) The Standard & Poor’s Index rose 436.05 points, or 1.37%, to 32,197.59 points (.SPX) It rose 102.56 points, or 2.62%, to 4,023.61 and the Nasdaq Composite Index (nineteenth) It added 469.85 points, or 4.06%, to 12,032.42 points.
Investors had widely expected an increase on Wednesday.
Microsoft rose 6.7% after it forecast double-digit revenue growth this fiscal year on demand for cloud computing services.
Alphabet stock jumped 7.7%, a day after it reported better-than-expected sales of Google search ads, easing concerns about a slowing ad market. Read more
T-Mobile US Inc (TMUS.O) It added 5.2% after it raised its subscriber growth forecast for the second time this year and exceeded quarterly profit forecasts. Read more
Volume on US exchanges was 10.56 billion shares, compared to an average of 10.88 billion for the full session over the last 20 trading days.
Advance issues outnumbered declining issues on the New York Stock Exchange by 5.27 to 1; On Nasdaq, the ratio was 3.15 to 1 in favor of advanced traders.
The S&P 500 hit a new 52-week high and 30 new low; The Nasdaq Composite recorded 50 new highs and 107 new lows.
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Additional reporting by Shriyashi Sanyal, Sruthi Shankar and Aniruda Ghosh in Bengaluru and Sinead Karo in New York; Editing by Anil de Silva, Jonathan Otis and Aurora Ellis
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