NEW YORK, New York – U.S. stocks jumped Wednesday despite the Federal Reserve hiking official interest rates by three-quarters of a percent.
“We think this is a bear market suckers’ rally,” Steve Chiavarone, senior portfolio manager at Federated Hermes told Reuters Wednesday.
The Federal Reserve says its main focus at present is elevated inflation and attributes its concerns not just to the pandemic but to the war in Ukraine.
“Russia’s war against Ukraine is causing tremendous human and economic hardship. The war and related events are creating additional upward pressure on inflation and are weighing on global economic activity. The Committee is highly attentive to inflation risks,” the FOMC said in its statement announcing the 75 basis points rise.
Technology stocks roared with the Nasdaq Composite jumping 469.85 points or 4.06 percent to 12,032.42.
The Dow Jones industrials advanced 436.05 points or 1.37 percent to 32,197.59.
The Standard and Poor’s 500 climbed 102.56 points or 2.62 percent to 4,023.61.
Not surprisingly, the U.S. dollar was sold off across the board, mainly because the Fed move was widely anticipated.
The euro jumped to 1.0209 by the New York close. The British pound strengthened to 1.2166. The Japanese yen firmed to 136.49. The Swiss franc rose to 0.9591.
The Canadian dollar accelerated to 1.2822. The Australian dollar rose sharply to 0.6994. The New Zealand dollar was in demand at 0.6264.
On overseas equity markets, the FTSE 100 in London advanced 0.57 percent. The German Dax rose 0.53 percent. The Paris-based CAC 40 added 0.75 percent.
In Hong Kong, the Hang Seng dived 262.43 points or 1.26 percent to 20,643.45.
In Japan, the Nikkei 225 gained 60.54 points or 0.22 percent to 22,715.75.
China’s Shanghai Composite was flat, dipping just 1.68 points or 0.05 percent to 3,275.76.
The Australian All Ordinaries added 12.90 points or 0.18 percent to 7,038.10.
In New Zealand, the S&P/NZX 50 lost 31.53 points or 0.28 percent to 11,135.03.
South Korea’s Kospi Composite incded up 2.57 points or 0.11 percent to 2,415.53.