Fed Raises Key Overnight Interest Rate By 25 bps
Portfolio Pulse from Bill Haddad
The Federal Reserve has increased the key overnight interest rate by 25 basis points.
July 26, 2023 | 6:00 pm
News sentiment analysis
Sort by:
Descending
NEGATIVE IMPACT
The rate hike could impact the Dow Jones Industrial Average ETF (DIA) as higher interest rates can lead to increased borrowing costs for companies, potentially affecting their profitability.
Higher interest rates increase borrowing costs for companies, which can affect their profitability and thus their stock prices. As DIA tracks the Dow Jones Industrial Average, it could be negatively impacted.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The rate hike could impact the SPDR Gold Shares ETF (GLD) as higher interest rates can make non-interest bearing assets like gold less attractive.
Higher interest rates can make non-interest bearing assets like gold less attractive as investors may prefer assets that yield returns. This could negatively impact GLD, which tracks the price of gold.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The rate hike could impact the iShares Russell 2000 ETF (IWM) as higher interest rates can lead to increased borrowing costs for companies, potentially affecting their profitability.
Higher interest rates increase borrowing costs for companies, which can affect their profitability and thus their stock prices. As IWM tracks the Russell 2000 index, it could be negatively impacted.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The rate hike could impact the Invesco QQQ ETF (QQQ) as higher interest rates can lead to increased borrowing costs for companies, potentially affecting their profitability.
Higher interest rates increase borrowing costs for companies, which can affect their profitability and thus their stock prices. As QQQ tracks the NASDAQ-100 index, it could be negatively impacted.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80
NEGATIVE IMPACT
The rate hike could impact the SPDR S&P 500 ETF (SPY) as higher interest rates can lead to increased borrowing costs for companies, potentially affecting their profitability.
Higher interest rates increase borrowing costs for companies, which can affect their profitability and thus their stock prices. As SPY tracks the S&P 500 index, it could be negatively impacted.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80