Why stocks soared after the Fed’s most recent rate hike

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Last Updated on July 28, 2022 by Bitfinsider

On Wednesday, stocks only went in one direction: upward.

The Nasdaq was up more than 4%, the S&P 500 was up 2.6 %, and the Dow was up 1.4 % when the closing bell rung. This was the largest gain for the Nasdaq since November 2020.

The S&P 500 has increased by more than 1% following each of the Fed’s most recent four sessions, all of which have seen the central bank raise interest rates (including Wednesday’s jump).

And the S&P 500 has gained 10% since its most recent low on June 16th.

Expectations drove market movement on Wednesday, as usual. Expectations that the Fed’s most forceful interest rate increases may have already been completed.

The Federal Reserve decided to increase its benchmark interest rate by 0.75 percent on Wednesday, the second consecutive meeting that such a significant change was made. According to Powell’s plan, these drastic measures are only intended to lower inflation.

Since the early 1980s, the Fed has not increased interest rates by this much across two meetings. The rate of inflation in June was 9.1%, the highest level since 1981.

Investors and economists recognized the outlines of a central bank that will let off the gas pedal in the upcoming months in both its policy statement and Powell’s remarks during the news conference on Wednesday.

Investors should applaud this development.


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Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.


Hardware wallets are safe and secure devices that can be used offline. They keep your cryptocurrency offline, making it impossible for you to be hacked. To find out more on the leading hardware wallets, you may view our reviews here: Ledger & Trezor
Disclaimer: The views and opinions expressed by the author, or any people mentioned in this article, are for informational purposes only, and they do not constitute financial, investment, legal, tax or other advice. Investing in or trading cryptocurrency or stocks comes with a risk of financial loss.

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