On Wednesday, the Fed raised interest rates by 25 basis points and did not give up the possibility of further increases in light of the fight against inflation in the country. At the same time, the Dow blue chip index rose on this news, and this was its 13th increase in a row, the longest since 1987, writes Business Insider.
US stock indices traded mixed on Wednesday. In particular, the S&P 500 and Nasdaq 100 declined, while the Dow Jones Industrial Average managed to finish the day higher. The rally on it began on July 10, and so far there has not been a single unprofitable session, which has become a record since January 1987.
According to most market traders, this was the last rate hike in the current tightening cycle. Therefore, now all attention will be paid to inflation data - if they turn out to be “soft” enough, and the labor market weakens, investors can reasonably expect the Fed to pause in September.
Before the next Fed meeting in September, 2 inflation reports and 2 US employment reports will be published.
In terms of quarterly reporting, of the 132 S&P 500 companies that have already reported second-quarter results, 77% outperformed earnings estimates by an average of 6%, and 64% outperformed estimates by an average of 3%.