Home » News » Stocks New York: Dow little changed after ‘big’ rate hike | 06/15/22

Stocks New York: Dow little changed after ‘big’ rate hike | 06/15/22

NEW YORK (dpa-AFX) – So far on Wednesday, the reaction on the US stock exchanges to a new, “big” rate hike the US Federal Reserve failed. The Dow recently rose by 0.10 percent to 30,396 points. Shortly before the rate hike was announced, the Dow was about half a percentage point higher.

The US Federal Reserve has raised its key interest rate sharply. It is up 0.75 percentage points and is now in a range of 1.5 to 1.75 percent, the Fed announced in Washington on Wednesday. Most analysts had expected a tightening of 0.5 percentage points. However, many observers had also predicted a larger step. A step of 0.75 points was expected on the financial markets.

The background to the significant tightening is the high level of inflation, which is currently higher than it has been for over 40 years. The central bank had already raised interest rates by 0.5 percentage points in May and by 0.25 percentage points in March.

The market-wide S&P 500 recently rose by 0.28 percent to 3746 points. The tech-heavy NASDAQ 100 recovered a little more strongly, gaining 0.85 percent to 11,408 points.

Among the individual values, Boeing stood out with a price increase of a good seven percent. As on the previous day, they led the winners in the leading Dow index. Traders justify the gains with a media report that the airline China Southern Airlines carried out a test flight with the crisis jet 737 MAX.

Citigroup shares gained 2.8 percent. The investment bank forecast that sales of securities trading in the second quarter should increase by a quarter compared to the same period last year.

Boston Scientific’s shares gained almost two percent. The medical technology manufacturer, valued at 52 billion US dollars on the stock exchange, takes over the majority of the South Korean MITech, which produces products for skin smoothing, among other things./bek/he

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