Wall Street continues to rise after the Fed

All three US market indices are moving into positive territory following the central bank’s interest rate announcements, as lower oil prices helped boost investment sentiment.

Especially the industrial index Dow Jones Operate with profits 0,6% Or 205 units and is located in 34677 unitsenlarged Standard & Poor’s 500 On high 0,2% in 4,452 unitswhile likely from a technological standpoint Nasdaq It remains almost unchanged in 13,679 units.

Oil prices exceeded yesterday $95 Per barrel (Brent), today it is trending lower ($93.7 with -0.7%), which somewhat calms concerns about a new spiral of inflationary pressures in economies due to the jump in energy costs.

at the same time, 10 years USA Its performance is also declining today after reaching its highest level since 2007 yesterday, which also leaves more room for stock movements.

In other news for today, the US central bank decided to keep interest rates unchanged, which are already at their highest level in 22 years, as widely expected by international markets.

However, the median forecast of bank officials expects another increase in 2023, but also closes 2024 with borrowing costs falling 5.1%.

Specifically, Fed officials’ revised forecasts (chart dot) show another increase in interest rates this year, followed by two rate cuts next year, instead of the four cuts they expected in June.

Regarding the additional increase in interest rates, 12 officials indicated it in their forecasts, compared to seven who opposed it (compared to 6 officials who opposed it in June).

Elsewhere, Fed officials now expect the Personal Expenditure Index (PCE – the bank’s preferred measure of inflation) to reach 3.3% at the end of 2023, slightly higher than the June estimate of 3.2%, while they then expect it to fall to 2.5% by 2023. End of 2024, they estimated in June.