Markets turn negative as Fed raises rates
- 1 month ago
U.S. indexes have declined as the Fed Reserve has once again raised rates, by one quarter point, for the fourth and final time in 2018 and a further two hikes are now expected for 2019.
DJIA reversed a 350 point gain as the announcement was made, while the S&P500 lost its 1% rise and has fallen into the red zone.
The Nasdaq Composite too fell by 0.2%, and due to the news, 10-year Treasury note yield fell to its lowest since May 30 to 2.798%.
The Fed’s decision to up the rates were due to a tight labour market, as previous data showed as unemployment was at record lows and pointed to a strong growth in the economy.
"The Committee judges that some further gradual increases in the target range for the federal funds rate will be consistent with sustained expansion of economic activity, strong labour market conditions, and inflation near the Committee's symmetric 2 percent objective over the medium term."
Source: Smart Trend Team