The stock exchange of new york has ended today on a high, following the decision of the Federal Reserve (Fed) to keep interest rates of reference, with the Nasdaq composite to set a new historical maximum.
The definitive results of the session indicate that the Dow Jones Industrial Average progressed 0,90% (163,74 points), for the 18.293,70 units, and the Nasdaq 1,03% (53,83), 5.295,18, reaching a new record. The index expanded S&P 500 climbed 1,09% (23,36), 2.163,12 points.
At the end of a two-day meeting in Washington, the monetary policy committee (FOMC, the acronym in English) of the Fed decided, unsurprisingly, to keep their rates the directors on their current range, between 0.25% and 0,50%.
“investors appreciated the decision today, once there was a small fear that the rates were the same magazines in high. This uncertainty has disappeared”, said Gregori Volokhine, of Meeschaert.
A rise in rates increases the costs of the credit and makes it more attractive applications in products that offer fixed income, which diverts investments in the stock market.
The stock also benefited from positive comments from the chairman of the Fed, Janet Yellen, about the state of health of the u.s. economy.
“overall, we are pleased to see how the U.S. economy is acting,” said Yellen during the press conference that followed the meeting of the FOMC.
in The long term, the Fed has indicated that the arguments in favour of a new increase of the rates have been increased, although say that, “of the moment”, it waits for more progress on the two objectives of the institution, namely, full employment, and an annual inflation rate around 2%.
investors do wonder in particular about the possibility of a rate hike in the month of December.
“She hasn’t deleted it, she was not admitted and there is so much that will happen until December, ( … ),” said Volokhine.
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