Wall Street opened this Wednesday in green and the Dow Jones Industrialsits main indicator, rose 0.39%, when the president of the Reserva Federal (Fed), Jerome Powellconfirm to Congress that there will be an interest rate cut sometime this year.
Ten minutes after the trading floor opened, the Dow Jones stood at 38,734 points, and the selective S&P 500 rose 0.56% to 5,106 points.
The composite index of the Nasdaq market, where the main technology companies are listed, grew by 0.81%, to 16,068 units.
The president of the US Federal Reserve (Fed), Jerome Powell, will appear this Wednesday before the Financial Services Committee of the House of Representatives to explain the regulator’s decisions on interest rates.
“We think our policy rate is likely to be at its peak during this tightening cycle. “If the economy generally performs as expected, it will probably be appropriate to begin reducing rates at some point this year.”states the president in the speech he will deliver and which was previously published on the Fed website.
As he must do by mandate every six months, Powell will appear today before the House of Representatives and tomorrow before the Senate to explain the latest monetary policy decisions of the US central bank.
In his initial speech, Powell will remain faithful to the regulator’s speech, which has kept rates unchanged since its July 2023 meeting, in the range of 5.25% and 5.5%, its highest level since 2001. All of this after eleven increases carried out since March 2022 to control inflation, which exceeded 9% in the summer of that year.
It will be necessary to see if Powell goes something off script in the round of questions that the US congressmen will ask him, words that the markets are waiting with uncertainty in case he offers some more concrete clue about when rates will begin to lower.
The cryptocurrency bitcoinwhich exceeded $69,000 on Tuesday, marking a new all-time high and hours later deflated to $63,000, rose 7.56% this Wednesday, thus exceeding $67,000.
By sector, gains predominated, led by public services (0.95%) and technology (0.91%), while the only sector in red was the financial sector (-0.23%).
Among the 30 Dow Jones stocks, the biggest advances were for Salesforce (2.22%) and Intel (1.99%), and the most affected were Goldman Sachs (-0.94%) and JPMorgan (-0.34 %). EFE (I)
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