Stocks Rise Despite Federal Reserve's Interest Rate Hike
U.S. stock indexes are higher following the Federal Reserve’s decision to raise interest rates for the first time since 2023, as inflation remains above its target of 2%. The S&P 500 rose by +0.30%, while the Nasdaq Composite gained more than half a percent at +0.68%. Crude oil prices fell after reports showed an unexpected increase in U.S. crude inventories and gasoline supplies, which helped ease bond yields and improve market sentiment. Intel shares climbed over 4% amid news of potential collaboration with South Korean chipmaker SK Hynix to produce memory chips in the United States for the first time. Economic data was mixed: August retail sales rose more than expected at +1.2%, but September’s housing market index hit a nearly four-year low, and mortgage applications declined sharply. The Fed increased its federal funds rate by 25 basis points to between 3.75% and 4.00%. Global markets also saw gains with the Euro Stoxx 50 up +0.36%, China’s Shanghai Composite rising from a six-week low, and Japan's Nikkei-225 gaining over half a percent.
Topics: crude oil prices economic data fed rate hike stock market