U.S. Equities Rise Amid Rate Hike; Dollar Weakens Against Major Currencies
- Reports
- 8
- Developments
- 1
- Repetition
- 88%
New informationRepeats or wire copies
What happened
U.S. equities posted gains on Thursday, with the Federal Reserve having lifted official interest rates for the first time in three years. The three major indexes all showed solid gains: the S&P 500 closed at 7,637.76, up 1.14 percent. The Dow Jones Industrial Average finished at 51,778.04, up 0.61 percent. The tech-heavy Nasdaq Composite posted the strongest gain, closing at 26,418.30, up 1.69 percent.
Why it matters
The rate hike was the first by the Federal Reserve in three years, influencing market sentiment. The U.S. Dollar weakened against most major currencies on Thursday, although the British Pound was noted as the only currency to decline.
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Who's involved
- US Dollar (Next day)The U.S. Dollar is the subject of currency movements detailed in the reports.
- FEDThe business responsible for setting the official interest rates.
- Canadian dollarCurrency of Canada, tracked against the U.S. Dollar.
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The entities involved
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US Dollar (Next day)
Distinct currency with ISO 4217 code "USN", defined for trade purposes
Related events
- Renewed fighting in the Middle East and hawkish rate signals are driving a reassessment of US Dollar sentiment and impacting the GBP/USD pair.
- Manufacturing weakness, coupled with high interest rate expectations, has strengthened the US dollar and pushed gold prices down.
- The Fed signals suggest that falling oil prices are reducing the likelihood of future rate hikes, causing the US Dollar to retreat against major international currencies amid concerns over unsustainable US government deficits.
- Bitcoin exchange rate is closely watched by investors amidst market skidding due to the decline of the US dollar.
- Fed rate hike expectations drove dollar strength, causing the Indian Rupee and Asian currencies to trade lower.
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