The stock market rallied after the Fed; European markets close higher ahead of Fed decision
Stocks rallied Wednesday after the Federal Reserve announced its much anticipated 0.75 percentage point rate increase to fight inflation, but hinted that it could slow the pace of its hiking campaign at some point.
The Dow Jones Industrial Average jumped 436.05 points, or nearly 1.4%, to 32,197.59. The S&P 500 gained 2.62% to close at 4,023.61. The Nasdaq Composite climbed 4.06% to 12,032.42. Tech shares led gains after better-than-feared results from Alphabet and Microsoft.
rise same-store sales.
Alphabet shares rose about 7.7% after the tech giant’s quarterly report showed strong revenue from Google’s search business. Microsoft gained close to 6.7% after reporting a 40% jump in revenue growth for Azure and cloud services. The gains came even after both companies posted earnings and revenue that fell below analyst estimates.
The pan-European Stoxx 600 closed up by 0.5%, with travel and leisure stocks climbing 3% to lead the gains with most sectors and bourses trading firmly higher.
Deutsche Bank beat market expectations to post an eighth straight quarter of profit on Wednesday, recording a second-quarter net income of 1.046 billion euros ($1.06 billion).
The German lender exceeded consensus expectations among analysts aggregated by Refinitiv of a 960.2 million euro profit, and vastly improved on the 692 million euro profit for the same period last year.
Source: CNBC, Investing.com