Fed Raises Interest Rates To 5.5%, The Highest Since Early 2001
Portfolio Pulse from Piero Cingari
The Federal Reserve has raised the federal funds rate by 0.25% to 5.25%-5.5%, the highest level since February 2001. The decision was influenced by continued economic expansion, resilience of the U.S. banking system, and robust job market gains. The S&P 500 Index, Nasdaq 100 Index, and gold prices reacted with volatility to the news.
July 26, 2023 | 6:10 pm
News sentiment analysis
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POSITIVE IMPACT
The SPDR Gold Trust (GLD) rose above $1,970/oz following the announcement of the interest rate hike.
Gold is often seen as a safe haven asset during times of economic uncertainty. The interest rate hike could increase uncertainty, leading to a rise in the price of gold and the GLD ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The Invesco QQQ Trust (QQQ) mirrored the volatility seen in the S&P 500 following the interest rate hike.
The interest rate hike can lead to increased borrowing costs, potentially impacting companies within the Nasdaq 100 and causing volatility in the QQQ ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80
NEUTRAL IMPACT
The SPDR S&P 500 ETF Trust (SPY) experienced volatility following the announcement of the interest rate hike.
The interest rate hike can lead to increased borrowing costs, potentially impacting companies within the S&P 500 and causing volatility in the SPY ETF.
CONFIDENCE 90
IMPORTANCE 70
RELEVANCE 80