US Stocks' Stable Response Post-Fed Rate Hike
US stocks responded with remarkable restraint on Wednesday, following the Federal Reserve's decision to raise the borrowing costs, reaching their highest levels since the global financial crisis.
A Predicted Hike in the Fed's Benchmark Overnight Interest Rate
In a move largely anticipated, the Federal Reserve increased its benchmark overnight interest rate by 25 basis points. This latest hike marks the eleventh such adjustment in the US central bank's previous dozen policy meetings.
Financial Market Analyst's Insight into the Fed Rate Hike
According to Michael Brown, a market analyst at TraderX in London, the market's calm reaction is unsurprising. All eyes are now on the upcoming press conference by Fed Chair Jerome Powell, with a keen interest in any possible guidance regarding the Federal Open Market Committee's (FOMC) intention to implement the extra 25 basis points hike anticipated in the June dot plot.
Implications of the Fed Rate Hike on Key US Stock Indices
The Dow Jones Industrial Average exhibited a slight uptick, increasing by 26.08 points or 0.07% to 35,464.15. Meanwhile, the S&P 500 and the Nasdaq Composite demonstrated a slight downturn, with the former losing 8.5 points or 0.19% to settle at 4,558.96, and the latter declining 45.25 points or 0.32% to close at 14,099.31.