US Shares surge on hints of rate hike pace slowdown

28 Jul 2022 , 09:03 AM

The US shares strongly rebounded on Wednesday, 27 July 2022, with major averages all finishing solidly higher, as the Federal Reserve raised its key interest rate by another 75 basis point interest rate, as widely expected, and as Jerome Powell hinted at a slowdown in the pace of rate hikes at future meetings. The market was also boosted on Wednesday by quarterly updates from Microsoft Corp and Alphabet Inc. At the close of trade, the Dow Jones Industrial Average index surged by 436.05 points, or 1.37%, to 32,197.59. The S&P500 index spurted by 102.56 points, or 2.62%, to 4,023.61. The tech-heavy Nasdaq Composite Index increased by 469.85 points, or 4.06%, to 12,032.42. All 11 S&P500 sectors closed higher, with communication services issue enjoyed largest percentage gain, rising 5.1%, followed by information technology (up 4.3%), consumer discretionary (up 3.85%), energy (up 2.2%), and financials (up 1.5%). Shares of Microsoft also surged by 6.7% after the company reported weaker than expected fiscal fourth quarter results but provided upbeat guidance. ECONOMIC NEWS: The Fed raised rates by 75 basis points for a second month, said such a move is possible again and reiterated its commitment to fighting inflation. But Chair Jerome Powell added the pace of hikes will slow at some point and the Fed will set policy meeting-by-meeting, avoiding explicit guidance on hike increments. Powered by Capital Market – Live News