KazPost

Kazakhstan News
Wednesday, Feb 28, 2024

Nasdaq soars 4% after Jerome Powell indicates the Fed is on track to slow rate hikes in December

Nasdaq soars 4% after Jerome Powell indicates the Fed is on track to slow rate hikes in December

"It is entirely possible the December hike of 50 basis points could be the last hike," Fundstrat's Tom Lee said of Fed Chair Jerome Powell's speech.

US stocks soared on Wednesday, led by the Nasdaq Composite, which was up as much as 4% after Federal Reserve Chairman struck a dovish tone in a speech to the Brookings Institution.

The other major indexes also spiked on the Fed chief's comments. The Dow Jones Industrial Average surged 737 points and the S&P 500 ended up more than 3%. 

In his remarks, Powell said there are signs inflation is beginning to finally ease, and that it makes sense for the Fed to slow down its interest rate hikes as soon as December. 

"The time for moderating the pace of rate increases may come as soon as the December meeting," Powell said, though he did hedge his comments by saying there is still work to be done in terms of taming inflation. 

But Fundstrat's Tom Lee believes Wednesday's speech from Powell could mark a shift going forward that leads to a less hawkish Fed. "It is entirely possible the December hike of 50 basis points could be the last hike," Lee told clients in a Wednesday note.

Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:

*  S&P 500: 4,080.10, up 3.09%

*  Dow Jones Industrial Average: 34,589.77, up 2.18% (737.24 points)

*  Nasdaq Composite: 11,468.00, up 4.41% 

Here's what else happened today:

*  The US dollar is on pace for its largest monthly loss since 2010. In November, it has fallen 4.2% against a basket of currencies, according to the WSJ Dollar Index.

Elon Musk called on the Federal Reserve to slash interest rates as soon as possible in a Tweet on Wednesday. Musk warned that the rapid rate hikes this year have dramatically increased the risk of a deep and painful economic downturn in the US.

*  Musk isn't the only person warning of a steep recession ahead. Both Michael Burry and Danny Moses of "The Big Short" fame warned of an imminent downturn ahead.

*  Kraken, the third-largest cryptocurrency exchange by volume, said on Wednesday that it would slash 30% of its work force.

*  Economic data was mixed on Wednesday, with third-quarter GDP growth revised upwards to 2.9% from 2.6%. Meanwhile, the November payroll report from ADP showed private companies adding 127,000 jobs, well below estimates for 190,000 jobs. The Labor Department's November jobs report will be released this Friday.

In commodities, bonds and crypto:


*  West Texas Intermediate crude oil jumped 3.18% to $80.69 per barrel. Brent crude, oil's international benchmark, rose 4.81% to $87.02.

*  Gold rose 1.08% to $1,782.70 per ounce.

*  The yield on the 10-year Treasury fell six basis points to 3.69%.

*  Bitcoin rose 1.14% to $17,064, while ether jumped 1.88% to $1,293.

Newsletter

Related Articles

KazPost
0:00
0:00
Close
It's always the people with the dirty hands pointing their fingers
Paper straws found to contain long-lasting and potentially toxic chemicals - study
FTX's Bankman-Fried headed for jail after judge revokes bail
Blackrock gets half a trillion dollar deal to rebuild Ukraine
America's First New Nuclear Reactor in Nearly Seven Years Begins Operations
Southeast Asia moves closer to economic unity with new regional payments system
Today Hunter Biden’s best friend and business associate, Devon Archer, testified that Joe Biden met in Georgetown with Russian Moscow Mayor's Wife Yelena Baturina who later paid Hunter Biden $3.5 million in so called “consulting fees”
Singapore Carries Out First Execution of a Woman in Two Decades Amid Capital Punishment Debate
Google testing journalism AI. We are doing it already 2 years, and without Google biased propoganda and manipulated censorship
Unlike illegal imigrants coming by boats - US Citizens Will Need Visa To Travel To Europe in 2024
Musk announces Twitter name and logo change to X.com
The future of sports
Unveiling the Black Hole: The Mysterious Fate of EU's Aid to Ukraine
Farewell to a Music Titan: Tony Bennett, Renowned Jazz and Pop Vocalist, Passes Away at 96
Alarming Behavior Among Florida's Sharks Raises Concerns Over Possible Cocaine Exposure
Transgender Exclusion in Miss Italy Stirs Controversy Amidst Changing Global Beauty Pageant Landscape
TikTok Takes On Spotify And Apple, Launches Own Music Service
Global Trend: Using Anti-Fake News Laws as Censorship Tools - A Deep Dive into Tunisia's Scenario
Arresting Putin During South African Visit Would Equate to War Declaration, Asserts President Ramaphosa
Hacktivist Collective Anonymous Launches 'Project Disclosure' to Unearth Information on UFOs and ETIs
Typo sends millions of US military emails to Russian ally Mali
Server Arrested For Theft After Refusing To Pay A Table's $100 Restaurant Bill When They Dined & Dashed
The Changing Face of Europe: How Mass Migration is Reshaping the Political Landscape
China Urges EU to Clarify Strategic Partnership Amid Trade Tensions
Europe is boiling: Extreme Weather Conditions Prevail Across the Continent
The Last Pour: Anchor Brewing, America's Pioneer Craft Brewer, Closes After 127 Years
Democracy not: EU's Digital Commissioner Considers Shutting Down Social Media Platforms Amid Social Unrest
Sarah Silverman and Renowned Authors Lodge Copyright Infringement Case Against OpenAI and Meta
Why Do Tech Executives Support Kennedy Jr.?
The New York Times Announces Closure of its Sports Section in Favor of The Athletic
BBC Anchor Huw Edwards Hospitalized Amid Child Sex Abuse Allegations, Family Confirms
Florida Attorney General requests Meta CEO's testimony on company's platforms' alleged facilitation of illicit activities
The Distorted Mirror of actual approval ratings: Examining the True Threat to Democracy Beyond the Persona of Putin
40,000 child slaves in Congo are forced to work in cobalt mines so we can drive electric cars.
Historic Moment: Edgars Rinkevics, EU's First Openly Gay Head of State, Takes Office as Latvia's President
An Ominous Shift in Warfare: Western Powers Risk War Crimes and Violate International Norms with Cluster Bomb Supply to Ukraine
Bye bye democracy, human rights, freedom: French Cops Can Now Secretly Activate Phone Cameras, Microphones And GPS To Spy On Citizens
The Poor Man With Money, Mark Zuckerberg, Unveils Twitter Replica with Heavy-Handed Censorship: A New Low in Innovation?
The Double-Edged Sword of AI: AI is linked to layoffs in industry that created it
US Sanctions on China's Chip Industry Backfire, Prompting Self-Inflicted Blowback
Meta Copy Twitter with New App, Threads
The New French Revolution
BlackRock Bitcoin ETF Application Refiled, Naming Coinbase as ‘Surveillance-Sharing’ Partner
Corruption in the European Parliament - Business as usual
UK Crypto and Stablecoin Regulations Become Law as Royal Assent is Granted
Paris Suburb Grapples with Violence as Curfew Imposed: Saint-Denis Residents Express Dismay and Anger
A Delaware city wants to let businesses vote in its elections
Alef Aeronautics Achieves Historic Milestone with Flight Certification for World's First Flying Car
Google Blocked Access to Canadian News in Response to New Legislation
French Politicians Advocate for Pan-European Regulation on Social Media Influencers
×