© Reuters.
Investing.com — U.S. stocks were rising and Treasury yields were falling as investors bet that the Federal Reserve is done raising interest rates after holding the benchmark rate steady for the second meeting in a row.
At 09:36 ET (13:36 GMT), the was up 290 points or 0.9%, while the was up 1.2% and the was up 1.3%.
The main indices on Wall Street closed substantially higher Wednesday, with the blue chip Dow gaining 220 points, or 0.7%, the broad-based S&P rose 1.1% and the tech-heavy Nasdaq climbed 1.6%.
Powell’s comments boost sentiment
This positive tone followed the conclusion of the latest policy-setting meeting by the U.S. , which resulted in the central bank holding interest rates steady, as widely expected.
The main focus, however, was on Powell’s comments after the decision’s announcement. The Fed chair kept alive the possibility of further rate hikes, but he also expressed uncertainty over how the economy would pan out, acknowledging that a recent market-driven rise in Treasury bond yields could have an impact on the economy.
He added that the Fed will only “proceed carefully,” adding that monetary policy is currently at a “restrictive” level.
The market had feared that recent strong economic data, especially last week’s hefty increase, would push Powell into adopting a hawkish stance. The fell to 4.649%.
Apple quarterly earnings in spotlight
With the Fed meeting now in the rear view mirror, investors will focus more squarely on the ongoing quarterly earnings season, with Apple (NASDAQ:), the world’s largest company in terms of market capitalization, due to release numbers after the close.
Investors will be closely listening to what the company says about consumer demand for its latest $1000 iPhone model.
Starbucks (NASDAQ:) stock rose 10% after the coffee chain said revenue rose 11% as strong demand in North America offset a feeble recovery in China.
Moderna (NASDAQ:) stock fell 12% after the drugmaker posted a quarterly loss as it took a $1.3 billion write down on unused Covid vaccines.
Oil gains after Fed stays steady
Oil prices rebounded Thursday, snapping a three-day decline, after the Fed kept interest rates on hold, hitting the dollar and helping risk appetite return to financial markets.
Markets largely traded past U.S. inventory data, with official data from the showing a slightly smaller-than-expected build in oil inventories over the week to October 27.
Distillate inventories saw a smaller-than-expected decline, while saw an unexpected limited build.
(Peter Nurse and Oliver Gray contributed to this item.)
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