Bermuda Post

Thursday, Feb 09, 2023

Nasdaq soars 4% after Jerome Powell indicates the Fed is on track to slow rate hikes in December

Nasdaq soars 4% after Jerome Powell indicates the Fed is on track to slow rate hikes in December

"It is entirely possible the December hike of 50 basis points could be the last hike," Fundstrat's Tom Lee said of Fed Chair Jerome Powell's speech.

US stocks soared on Wednesday, led by the Nasdaq Composite, which was up as much as 4% after Federal Reserve Chairman struck a dovish tone in a speech to the Brookings Institution.

The other major indexes also spiked on the Fed chief's comments. The Dow Jones Industrial Average surged 737 points and the S&P 500 ended up more than 3%. 

In his remarks, Powell said there are signs inflation is beginning to finally ease, and that it makes sense for the Fed to slow down its interest rate hikes as soon as December. 

"The time for moderating the pace of rate increases may come as soon as the December meeting," Powell said, though he did hedge his comments by saying there is still work to be done in terms of taming inflation. 

But Fundstrat's Tom Lee believes Wednesday's speech from Powell could mark a shift going forward that leads to a less hawkish Fed. "It is entirely possible the December hike of 50 basis points could be the last hike," Lee told clients in a Wednesday note.

Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:

*  S&P 500: 4,080.10, up 3.09%

*  Dow Jones Industrial Average: 34,589.77, up 2.18% (737.24 points)

*  Nasdaq Composite: 11,468.00, up 4.41% 

Here's what else happened today:

*  The US dollar is on pace for its largest monthly loss since 2010. In November, it has fallen 4.2% against a basket of currencies, according to the WSJ Dollar Index.

Elon Musk called on the Federal Reserve to slash interest rates as soon as possible in a Tweet on Wednesday. Musk warned that the rapid rate hikes this year have dramatically increased the risk of a deep and painful economic downturn in the US.

*  Musk isn't the only person warning of a steep recession ahead. Both Michael Burry and Danny Moses of "The Big Short" fame warned of an imminent downturn ahead.

*  Kraken, the third-largest cryptocurrency exchange by volume, said on Wednesday that it would slash 30% of its work force.

*  Economic data was mixed on Wednesday, with third-quarter GDP growth revised upwards to 2.9% from 2.6%. Meanwhile, the November payroll report from ADP showed private companies adding 127,000 jobs, well below estimates for 190,000 jobs. The Labor Department's November jobs report will be released this Friday.

In commodities, bonds and crypto:


*  West Texas Intermediate crude oil jumped 3.18% to $80.69 per barrel. Brent crude, oil's international benchmark, rose 4.81% to $87.02.

*  Gold rose 1.08% to $1,782.70 per ounce.

*  The yield on the 10-year Treasury fell six basis points to 3.69%.

*  Bitcoin rose 1.14% to $17,064, while ether jumped 1.88% to $1,293.

Newsletter

Related Articles

Bermuda Post
Close
0:00
0:00
Today's news from Britain - 9th February 2023
The five largest oil companies in the West generated combined profits of nearly $200 billion in 2022, which has led to increased calls for governments to impose tougher windfall taxes
2 earthquakes in Turkey killed over 2,300 people
Powerful Earthquake Strikes Turkey and Syria, Killing More Than 1,300 People.
Turkish photographer Ugur Gallenkus portrays two different worlds within a single image. Brilliant work
Tennessee Bill Would Imprison People for 3 Years If They 'Lie' About Rape to Get an Abortion.
Charlie Munger, calls for a ban on cryptocurrencies in the US, following China's lead
EU found a way to use frozen Russian funds
First generation unopened iPhone set to fetch more than $50,000 at auction.
WARNING GRAPHIC CONTENT - US Memphis Police murdering innocent Tyre Nichols
Almost 30% of professionals say they've tried ChatGPT at work
Interpol seeks woman who ran elaborate exam cheating scam in Singapore
What is ChatGPT?
Bill Gates is ‘very optimistic’ about the future: ‘Better to be born 20 years from now...than any time in the past’
Tesla reported record profits and record revenues for 2022
Prince Andrew and Virginia Giuffre Photo Is Fake: Ghislaine Maxwell
Opinion | Israel’s Supreme Court Claims a Veto on Democracy
Moonwalker Buzz Aldrin Gets Married On His 93rd Birthday
Who’s Threatening Israeli Democracy?
Federal Reserve Probes Goldman’s Consumer Business
China's first population drop in six decades
Microsoft is finalising plans to become the latest technology giant to reduce its workforce during a global economic slowdown
China's foreign ministry branch in Hong Kong urges British gov't to stop the biased and double standards Hong Kong report
Tesla slashes prices globally by as much as 20 percent
1.4 Million Copies Of Prince Harry's Memoir 'Spare' Sold On 1st Day In UK
After Failing To Pay Office Rent, Twitter May Sell User Names
Lisa Marie Presley, singer and daughter of Elvis, dies aged 54
FIFA president questioned by prosecutors
Britain's Sunak breaks silence and admits using private healthcare
Dirty bomb fears as URANIUM is found in cargo at Heathrow
Hype and backlash as Harry's memoir goes on sale. Unnamed royal source says prince 'kidnapped by cult of psychotherapy and Meghan'
Saudi Arabia set to overtake India as fastest-growing major economy this year 
Google and Facebook’s dominance in digital ads challenged by rapid ascent of Amazon and TikTok
FTX fraud investigators are digging deeper into Sam Bankman-Fried's inner circle – and reportedly have ex-engineer Nishad Singh in their sights
TikTok CEO Plans to Meet European Union Regulators
UK chaos: Hong Kong emigrants duped by false prospectus
France has banned the online sale of paracetamol until February, citing ongoing supply issues
Japan reportedly to give families 1 million yen per child to move out of Tokyo
Will Canada ever become a real democracy?
Hong Kong property brokerages slash payrolls in choppy market
U.S. Moves to Seize Robinhood Shares, Silvergate Accounts Tied to FTX
Effect of EU sanctions on Moscow is ‘less than zero’ – Belgian MEP
Coinbase to Pay $100 Million in Settlement With New York Regulator
FTX assets worth $3.5bn held by Bahamas securities regulator
A Republican congressman-elect is under investigation in New York after he admitted he lied about his education and work experience.
Brazilian football legend Pele, arguably the greatest player ever, has died at the age of 82.
Hong Kong to scrap almost all its Covid rules
EU calls screening of travellers from China unjustified
US imposes Covid testing for visitors from China
Ukraine President Volodymyr Zelenskyy Addresses Joint Session of Congress - FULL SPEECH
×