The Dow industrials, S&P 500 and Nasdaq Composite all ended slightly higher Wednesday even though the Federal Reserve left interest rates unchanged and hinted at possible "stagflation" risks to the U.S. economy. The$Dow Jones Industrial Average (.DJI.US)$gained 284.97 points (0.7%), while the$S&P 500 Index (.SPX.US)$added 24.37 ticks (0.4%) to 5,631.28. The$Nasdaq Composite Index (.IXIC.US)$rose the least in...
bullbearnme
:
If the Federal Reservedoes not cutinterest rates at its current meeting, the U.S. stock market could face several potential impacts: Negative Effects on the Stock Market:Higher Borrowing Costs for Companies: Companies will continue to face elevated borrowing costs, which can reduce profit margins. This may lead to lower corporate earnings, potentially depressing stock prices, especially in capital-intensive sectors like real estate, utilities, and manufacturing. Slower Economic Growth: High interest rates can dampen consumer spending and business investment, slowing economic growth. This typically reduces overall corporate revenues, leading to lower stock valuations. Market Volatility and Sell-Offs: Investors who were expecting a rate cut may adjust their portfolios, potentially leading to a market correction. Growth-oriented and tech stocks, which are particularly sensitive to interest rates, might experience sharper declines. Stronger U.S. Dollar: Higher interest rates tend to strengthen the U.S. dollar, which can hurt multinational companies by reducing the value of overseas earnings when converted back to dollars. This can weigh on the stock prices of companies with significant international exposure. Positive Effects (Possible but Limited):Support for Financial Sector: Banks and financial institutions might benefit from higher interest rates as they can charge more for loans. This can boost the profitability of banks, potentially supporting their stock prices. Reduced Inflation Pressures: Steady rates could help keep inflation in check, preserving purchasing power and potentially boosting consumer confidence over the long term. Long-Term Market Stability: A cautious Fed approach might reduce the risk of financial instability, supporting long-term market confidence. Historical Context and Market Sentiment:TheS&P 500andNASDAQhave historically reacted negatively to prolonged periods of high interest rates due to compressed profit margins and reduced risk appetite.
The Federal Open Market Committee kept the target fed funds rate steady at its current level of at of 4.25% to 4.5%, citing rising risks of unemployment and accelerating inflation. "Uncertainty about the economic outlook has increased further," policymakers said in a statement released at the end of its two-day meeting Wednesday afternoon. "The Committee is attentive to the risks to both sides of its dual mandate a...
Market Wrap – Wednesday, May 7 Anticipation is high as Wall Street holds its breath ahead of the FOMC rate decision. While the broader market edged cautiously higher, the Magnificent 7 delivered a split performance as investors positioned themselves for potential monetary policy signals. Winners: • AMZN$Amazon (AMZN.US)$+1.64% and META$Meta Platforms (META.US)$+1.30% led the pack, showing resilience in consumer and tech sectors. • NVDA$NVIDIA (NVDA.US)$...
ESCOrising73
Alster
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you would do well to take an economics class. be thankful for Powell.... a reckless Fed chair bowing down to the White House would collapse everything. unless you're ready to live off grid!
Berkshire 2025 highlights: Stepping aside as CEO, trade and market volatility
$Berkshire Hathaway-A (BRK.A.US)$ held its highly anticipated annual shareholders meeting Saturday. Here are some key takeaways from the eve Show More
Buffettttttt
May 3 21:00
Berkshire's 2025 Annual Shareholders Meeting
Discussing
FOMC holds rates amid heightened uncertainty: Where will US stocks head next?
🎙️Discussion 1. With the Fed highlighting "elevated uncertainty", are you prioritizing rate projections or near-term economic data for ma Show More
Moo Live
Mar 20 02:25
FOMC Press Conference, March 19, 2025
U.S Tech Companies U.S Tech Companies
U.S leading technology companies with strong market presence, influential in their industries, and notable for robust innovation and profitability. Information is provided by Futu and is a non-exhaustive list of all thematic stocks for reference purposes only.
This section presents the top 5 stocks in U.S Tech Companies, ranked from highest to lowest based on real-time market data. U.S leading technology companies with strong market presence, influential in their industries, and notable for robust innovation and profitability. Information is provided by Futu and is a non-exhaustive list of all thematic stocks for reference purposes only.
This section presents the top 5 stocks in U.S Tech Companies, ranked from highest to lowest based on real-time market data.
U.S. Crypto Concept Stocks U.S. Crypto Concept Stocks
Companies involved in the creation, trade, and services of digital forms of money.Displayed third-party logos, brands, or trademark images on screens or web pages are only for identification purposes and remain the property of their respective owners.Displayed third-party logos, brands, or trademark images on screens or web pages are only for identification purposes and remain the property of their respective owners. Information is provided by Futu and is a non-exhaustive list of all thematic stocks for reference purposes only.
This section presents the top 5 stocks in U.S. Crypto Concept Stocks, ranked from highest to lowest based on real-time market data. Companies involved in the creation, trade, and services of digital forms of money.Displayed third-party logos, brands, or trademark images on screens or web pages are only for identification purposes and remain the property of their respective owners.Displayed third-party logos, brands, or trademark images on screens or web pages are only for identification purposes and remain the property of their respective owners. Information is provided by Futu and is a non-exhaustive list of all thematic stocks for reference purposes only.
This section presents the top 5 stocks in U.S. Crypto Concept Stocks, ranked from highest to lowest based on real-time market data.
bullbearnme : If the Federal Reservedoes not cutinterest rates at its current meeting, the U.S. stock market could face several potential impacts:
Negative Effects on the Stock Market:Higher Borrowing Costs for Companies:
Companies will continue to face elevated borrowing costs, which can reduce profit margins.
This may lead to lower corporate earnings, potentially depressing stock prices, especially in capital-intensive sectors like real estate, utilities, and manufacturing.
Slower Economic Growth:
High interest rates can dampen consumer spending and business investment, slowing economic growth.
This typically reduces overall corporate revenues, leading to lower stock valuations.
Market Volatility and Sell-Offs:
Investors who were expecting a rate cut may adjust their portfolios, potentially leading to a market correction.
Growth-oriented and tech stocks, which are particularly sensitive to interest rates, might experience sharper declines.
Stronger U.S. Dollar:
Higher interest rates tend to strengthen the U.S. dollar, which can hurt multinational companies by reducing the value of overseas earnings when converted back to dollars.
This can weigh on the stock prices of companies with significant international exposure.
Positive Effects (Possible but Limited):Support for Financial Sector:
Banks and financial institutions might benefit from higher interest rates as they can charge more for loans.
This can boost the profitability of banks, potentially supporting their stock prices.
Reduced Inflation Pressures:
Steady rates could help keep inflation in check, preserving purchasing power and potentially boosting consumer confidence over the long term.
Long-Term Market Stability:
A cautious Fed approach might reduce the risk of financial instability, supporting long-term market confidence.
Historical Context and Market Sentiment:TheS&P 500andNASDAQhave historically reacted negatively to prolonged periods of high interest rates due to compressed profit margins and reduced risk appetite.
affable Blobfish_403 : What does a strong rally in the closing period mean? Who has such great power?