Powell's Interest Rate Remarks Trigger Thursday Roller Coaster: What Did Fed Chair Say?
Portfolio Pulse from Piero Cingari
Federal Reserve Chair Jerome Powell's remarks during an interview with Bloomberg triggered significant market shifts. Initially, Powell's cautious tone led to expectations of a halt in interest rate hikes. However, during the Q&A session, Powell stated that the economy is handling high interest rates well and that high inflation remains a concern. This led to fears of further rate hikes, pushing Treasury yields higher. The SPDR S&P 500 ETF Trust (NYSE:SPY) managed to partially trim daily losses.
October 19, 2023 | 6:40 pm
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The SPDR S&P 500 ETF Trust (NYSE:SPY) managed to partially trim daily losses following Powell's remarks. The ETF's performance was influenced by the market's reaction to the possibility of further interest rate hikes.
Powell's remarks led to a shift in market sentiment, initially leading to expectations of a halt in interest rate hikes, but later causing fears of further hikes. This volatility impacted the performance of the SPDR S&P 500 ETF Trust (NYSE:SPY), which managed to partially trim its daily losses. The ETF's performance is closely tied to market sentiment and the broader economic outlook.
CONFIDENCE 85
IMPORTANCE 70
RELEVANCE 80