New York stocks rose on the 16th in relief from Federal Reserve Chairman Jerome Powells remarks despite the hawkish stance of the Federal Open Market Committee. / Photo = Reuters New York stocks rose on relief from Federal Reserve Chairman Jerome Powells remarks despite the hawkish stance of the Federal Open Market Committee.
At the New York Stock Exchange on the 16th, the Dow Jones Industrial Average closed at 34,063.10, up 518.76 points from the previous trading day. The Standard & Poors 500 Index rose 95.41 points to 4357.86, and the Nasdaq index, which focuses on tech stocks, jumped 487.93 points to close at 13,436.55.
The Fed announced today that it will raise interest rates at the FOMC and will raise rates six more times this year, as well as quantitative tightening at its May meeting. For the first time since 2018, the base rate target range has been raised by 25 basis points to 0.25% to 0.5%.
Chairman Powell said at a press conference that the US economy is robust and the risk of a recession has not risen, and that inflation will still begin to decline in the second half of the year and decline sharply next year.
US stocks expanded their gains despite the hawkish move of the Fed as Chairman Powell gave a positive economic outlook.
News of progress in negotiations between Russia and Ukraine also boosted the stock price. Russian Foreign Minister Sergei Lavrov said that the current neutrality status is being seriously discussed with security measures, and that there are some very specific phrases that are close to an agreement.
Oil prices fell for the third consecutive trading day and stabilized somewhat, also contributing to the stock markets rebound. The price of crude oil from West Texas ended at $95 per barrel.
Chinese companies listed on the New York Stock Exchange soared on the news that a US-China regulatory deal is underway. Didi Global soared 41.67%, while Pinduoduo and Alibaba also rose 56.06% and 36.76%, respectively. JD.com also closed up 39.36%.
The Financial Stability and Development Committee of the State Council of China said smooth communication between the supervisory bodies of the two countries regarding U.S.-listed Chinese stocks is ongoing and progress has been made.
Micron Technology rose 8.97% as Bernstein raised its rating by two levels. Bernstein said the dispute between Ukraine and Russia would not have a serious impact on memory chip demand and supply.
Nvidia rose 6.63% on the analysis that Wells Fargo is the right time to buy ahead of next weeks GTC 2022, while Intel rose 4.06% on the $36 billion investment news announced the day before. The Philadelphia Semiconductor Index surged 5.03%.
Airline stocks such as Boeing, Delta Air Lines, and travel stocks such as Booking.com Carnival showed an uptrend on the possibility of easing geopolitical risks surrounding Ukraine.
Delta Air Lines rose 5.94% after CEO Ed Bastian mentioned airfare hikes due to rising fuel costs in the future. He said that the deterioration of the global crude oil supply chain is worsening due to the ban on imports of Russian crude oil following the Russian invasion of Ukraine.
Seo Sang-young, a researcher at Mirae Asset Securities, said the US stock market started rising on expectations that geopolitical risks could be eased thanks to Ukrainian President Zelenskys remarks. Analysts analyzed that it returned the gains, but it expanded again after Fed Chairman Powell insisted that the US economy is robust and that inflation will begin to decline in the second half of this year.
