The leading US stock indexes were in the red until the Federal Reserve (Fed) announced the new key interest rate, and until Fed Chairman Jerome Powell began his subsequent press conference.
After that, two of them made a complete reversal with clear gains. The broad S&P 500 index rose 1.1 percent, the technology-heavy and also interest-sensitive Nasdaq composite index took the lead with a rise of 2.0 percent, while the Dow Jones industrial index traded sideways.
Analysts interpret the stock market reaction as investors taking note of Jerome Powell’s statement that the work to tame inflation has now begun to bear fruit, and that they therefore dare to bet that future interest rate increases will be lower than previously feared.
Among the winners are several tech companies, including chip manufacturer Nvidia, which rose 6.8 percent. The electric car manufacturer Tesla also rose sharply with an increase of 4.7 percent.
The US ten-year bond yield retreated after the Fed’s announcement to 3.40 percent. In addition, the dollar lost value against the krone – one dollar is traded for 10:33 kroner.