US stocks closed in positive territory on Friday after a volatile week following the Federal Reserve\u2019s interest rate decision on Wednesday and further pressure in the banking sector. The S&P 500, which fell as much as 1% in early Friday trading, ended up 0.57%. The Dow Jones and technology-heavy Nasdaq did the same, ending the week up 0.4% and 0.3%, respectively. Netflix, which led the S&P 500 on Thursday with the stock surging more than 9%, saw shares settle on Friday, up 2.5%.<\/p>\n\n\n\n
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The benchmark 10-year Treasury yield fell about 70 basis points to trade near 3.38%. On Wednesday, the Fed raised rates by 25 basis points, bringing the range for the fed funds rate to 4.75%-5%, the highest since October 2007, in addition to suggesting its aggressive rate hiking campaign to quell inflation was winding down.<\/p>\n\n\n\n
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\u201cThe Committee anticipates that some additional policy firming may be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2% over time,\u201d the Fed said in its policy statement, doing away with language for \u201congoing rate increases\u201d in interest rates.<\/p>\n\n\n\n
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Powell stuck with the Fed\u2019s narrative that there is still a path toward a soft-landing or returning inflation to target without pushing the economy into a recession. However, that path has become narrower because of the pressure on the banking system.<\/p>\n\n\n\n
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On Friday, St. Louis Fed President James Bullard raised his 2023 interest rate projection to 5.625%. This would outpace the Fed\u2019s latest \u201cdot plot\u201d projections, which suggest rates will continue to tick higher in 2023, but only slightly, with benchmark interest rates seen peaking at 5.1% this year, on par with the Fed\u2019s previous December projection. Despite concerns about inflation and rising interest rates, investors are still optimistic about the future of US stocks.<\/p>\n","protected":false},"excerpt":{"rendered":"
US stocks closed in positive territory on Friday after a volatile week following the Federal Reserve\u2019s interest rate decision on Wednesday and further pressure in the banking sector. The S&P 500, which fell as much as 1% in early Friday trading, ended up 0.57%. The Dow Jones and technology-heavy Nasdaq did the same, ending the …<\/p>\n","protected":false},"author":13,"featured_media":53211,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[39,36],"tags":[7192,6885,8143,8212,6901,7799,7587],"class_list":["post-81976","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-global-stock-markets","category-market-updates","tag-dow","tag-fed","tag-interest-rate-hikes","tag-james-bullard","tag-nasdaq","tag-netflix","tag-us-stocks"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/81976","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=81976"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/81976\/revisions"}],"predecessor-version":[{"id":81981,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/81976\/revisions\/81981"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/53211"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=81976"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=81976"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=81976"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}