Nasdaq soars 3.77% and Dax 3.76% respectively A trader smiles as the New York Stock Exchange surges. © AFP=News1
Reporter Park Hyung-ki = The world stock market rallied, with the US Nasdaq rising 3.8% on the news that the US Feds expected rate hike and the Ukraine ceasefire negotiations are making progress.
All three major indexes surged despite the Feds rate hike on the 16th.
The Dow surged 1.55%, the S&P 500 surged 2.24%, and the Nasdaq surged 3.77%, respectively. In particular, the Nasdaq, which had plummeted in the meantime, rose sharply. It appears that a low-priced buying trend for technology stocks has flowed in.
European stocks, which closed earlier, also closed sharply. Germanys DAKS surged 3.76%, UKs FTSE rose 1.62%, and Frances CAC surged 3.68%, respectively. The pan-European Stoxx 600 also surged 3.06%.
The reason why global stock markets soared all at once is interpreted as the news that the US Federal Reserve raised interest rates by 0.25 percentage points rather than 0.5 percentage points, and that negotiations on a ceasefire in Ukraine are making progress.
Federal Reserve Chairman Jerome Powell raised interest rates by 0.25 percentage points on Wednesday, saying it would begin the process of tightening fiscal conditions to gradually lower inflation. This is in line with market forecasts.
Fed Chairman Jerome Powell © AFP=News1
He also opposed the more aggressive 0.5 percentage point rate hike requested by some market participants at the beginning of the year, especially at the beginning of the year, avoiding shocking markets already faltered by Russias invasion of Ukraine.
The Fed also hinted that it would raise rates six more times in the future because the US economy is strong enough. The Fed is expected to raise rates up to six more times this year, according to the Federal Open Market Committee dotplot.
A report by the Financial Times in the UK that Ukraine and Russia have made significant progress in the ceasefire negotiations also contributed to the rally. With the FT report, the stock market appears to have rallied in hopes of an imminent ceasefire.
Ukrainian President Volodymyr Zelensky said in a speech to the nation that “peace agreements are starting to sound more realistic”.
Ukrainian President Volodymyr Zelensky meets with Polish Prime Minister Matteus Moravieki, Czech Prime Minister Petr Pyala and Slovenian Prime Minister Yanes Jansa in Kiiu on the 15th. 2022.03.15/news1 © Reuters = News 1 © News1 Reporter Kim Min-soo
Russian Foreign Minister Sergei Lavrov also told the BBC that there is hope for a compromise.
The US stock market as well as European stock markets seem to have surged all at once.
