WHY US STOCK MARKET GREW ALMOST 1% TODAY

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After long time US stock market closed on profit today, the point of close was not major but at least there is some correction was seen in the market today and one of the main reason for this is Fed’s today’s released of minutes.

S&P 500
S&P 500

REASON BEHIND THE GROWTH OF US STOCK MARKET

Fed has agreed to continue the rate hike however they have decided to do it on slow pace as it is affecting the economic growth in US. Investors were poring over the Fed’s internal deliberations for clues about its future path. After the meeting, Fed Chair Jerome Powell had said more hikes were needed, and took a more hawkish tone than investors had expected back then.

Burns McKinney, who is the portfolio manager at NFJ Investment Group LLC in Dallas has said today that the market is behaving like a kid who is asking to parents about something he likes, such as Ice cream, if parents denies to buy an ice cream the kid will keep asking for it as in his mind, the parents had bought him ice cream before and will do this time as well however, the kid (Market) believes that he is going to get an ice cream but not as quickly as he thinks. he added.

US STOCK MARKET UPDATE
US STOCK MARKET UPDATE

In addition to this he said that if Fed will go in the relax mode and stop rising the interest rates then all the efforts fed has made to control the inflation will make no sense and as a result the inflation can rose strongly then before.

The Dow Jones rose 133.4 points, or 0.4%, to 33,269.77; the S&P 500 gained 28.83 points, or 0.75%, to 3,852.97; and the Nasdaq Composite added 71.78 points, or 0.69%, to 10,458.76.

The S&P’s rate-sensitive technology index lost some ground after the minutes before finishing up 0.26%. Even the bank sector, which benefits from higher rates, pared gains but still finished up 1.9%

FEDRAL reserve
FEDRAL reserve

The Fed minutes are a good reminder for investors to expect rates to remain high throughout all of 2023. Amid a persistently strong job market, it makes sense that fighting inflation remains the name of the game for the Fed,” said Mike Lowengart, head of model portfolio construction at Morgan Stanley Global Investment Office in New York.

What’s your thinking about the market, will it go up from today?

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