Tag Archives: hikes

Technology stocks led markets higher for a third straight session Thursday as investors mulled a slew of mixed earnings and a surprise rate hike from the European Central Bank. The tech-heavy Nasdaq Composite gained 1.3%, while the benchmark S&P 500 index rose 1%. The Dow Jones Industrial Average added 160 points, or 0.5%. Shares of Amazon (AMZN) pushed higher for a seventh straight day, placing the e-commerce giant on pace for its longest winning streak since June 2020. The stock climbed 13%… Source link

(Bloomberg) — Taiwan Semiconductor Manufacturing Co. raised its 2022 revenue forecast while warning it will trim spending on expansion by as much as 9% from initial projections, reflecting uncertainty about electronics demand in the face of a potential global recession. Most Read from Bloomberg Chief Executive Officer C. C. Wei warned on Thursday it was too early to go into specifics about spending plans or the outlook for semiconductor demand in 2023 should customers delay purchases. But… Source link

Bank of Canada Governor Tiff Macklem takes part in a news conference in Ottawa, Ontario, Canada April 13, 2022. REUTERS/Blair Gable The Bank of Canada raised its benchmark rate by 100 basis points on Wednesday, a surprise move that exceeded economist expectations, as the central bank attempts to set a firehose against scorching inflation. The unexpected and supersized increase comes after two consecutive 50 basis point hikes, bringing the policy interest rate to 2.5 per cent, the highest level… Source link

The U.S. Federal Reserve risks weak economic growth throughout this year due to its backward-looking, “draconian” rate hikes, warned Wall Street’s best-known tech sector bull. ARK Invest founder Cathie Wood, who became famous for her prescient bets on disruptive technologies led by companies such as Tesla, argued the Fed must temper its policy given leading economic indicators were flashing red. These included speculative bets indicating an expectation for rising bankruptcies via… Source link

(Bloomberg) — Stanley Druckenmiller has a warning for Wall Street: The sharp decline in the stock market isn’t over just yet. Most Read from Bloomberg Story continues “My best guess is that we’re six months into a bear market,” Druckenmiller, who runs Duquesne Family Office, said Thursday at the 2022 Sohn Investment Conference. “For those tactically trading, it’s possible the first leg of that has ended. But I think it’s highly, highly probable that the bear market has a ways to… Source link

(Bloomberg) — Federal Reserve officials agreed at their gathering this month that they need to raise interest rates in half-point steps at their next two meetings, continuing an aggressive set of moves that would leave them with flexibility to shift gears later if needed. Most Read from Bloomberg While highlighting the “strong commitment and determination” of all policy makers to restore price stability, the minutes of the May 3-4 meeting, released Wednesday, showed officials attentive to… Source link

Analysts have been looking to the energy sector to jolt the market back to life as the U.S. economy continues to exit the current low-interest rate environment. “I’m actually very bullish on materials and even more bullish on energy moving forward,” Aptus Capital Advisors Portfolio Manager David Wagner told Yahoo Finance Live. “So if we go back to later periods in the early 2000s and other periods where we actually saw rising rates, so the Fed tightening, you still saw defensive… Source link

Traders are betting the Federal Reserve’s 0.5% rate increase today is far from its last this year. Fed funds futures are pricing in hikes of varying sizes for the next five meetings, and Fed officials themselves have endorsed that view — and suggested again today in their statement — that increases will continue. But what if the U.S. economy isn’t strong enough to withstand those rate increases and the Fed is forced to stop? “The Fed was too slow to act when the economy was growing,… Source link

(Bloomberg) — The Federal Reserve delivered the biggest interest-rate increase since 2000 and signaled it would keep hiking at that pace over the next couple of meetings, unleashing the most aggressive policy action in decades to combat soaring inflation. Most Read from Bloomberg The U.S. central bank’s policy-setting Federal Open Market Committee on Wednesday voted unanimously to increase the benchmark rate by a half percentage point. It will begin allowing its holdings of Treasuries and… Source link

Bank of Canada Governor Tiff Macklem says inflation is too high and we need higher interest rates (REUTERS/Blair Gable The Bank of Canada is raising its target for the overnight rate by half a percentage point to 1 per cent. Canada’s central bank says it will also stop buying government bonds and begin quantitative tightening (QT), beginning April 25. The Bank of Canada also sharply increased its inflation expectations, saying Russia’s invasion of Ukraine is creating economic… Source link