Wall Street extends gains after Fed rate hike

By Noel Randewich (Reuters) - Stocks on Wall Street extended gains on Wednesday after a widely expected interest rate hike by the U.S. Federal Reserve.

Reuters September 27, 2018 00:06:01 IST
Wall Street extends gains after Fed rate hike

Wall Street extends gains after Fed rate hike

By Noel Randewich

(Reuters) - Stocks on Wall Street extended gains on Wednesday after a widely expected interest rate hike by the U.S. Federal Reserve.

The Fed raised interest rates and left its monetary policy outlook for the coming years largely unchanged amid steady economic growth and a strong job market.

In a policy statement that marked the end of an era of "accommodative" monetary policy, Fed policymakers lifted the benchmark overnight lending rate by a quarter of a percentage point to a range of 2.00 percent to 2.25 percent.

The rate-sensitive S&P 500 financial index <.SPSY> was 0.43 percent lower, with bank shares <.BKX> down 0.58 pct.

The S&P 500 utilities index <.SPLRCU> and real estate index <.SPLRCR>, also both sensitive to interest rates, were down 0.16 percent and 0.06 percent, respectively.

The stock market has enjoyed a boom period and is at record levels. But as rates rise, equities face rising competition for investors' funds not only from bonds, but also from cash, which is now the most attractive it has been in about a decade.

The Dow Jones Industrial Average <.DJI> was up 0.32 percent at 26,577.49 points, while the S&P 500 <.SPX> gained 0.39 percent to 2,926.96. Ahead of the rate announcement, the S&P 500 was up about 0.26 percent.

The Nasdaq Composite <.IXIC> added 0.52 percent to 8,049.29.

Advancing issues outnumbered declining ones on the NYSE by a 1.18-to-1 ratio; on Nasdaq, a 1.02-to-1 ratio favoured advancers.

The S&P 500 posted 29 new 52-week highs and 12 new lows; the Nasdaq Composite recorded 57 new highs and 56 new lows.

(Additional reporting by Amy Caren Daniel in Bengaluru; Editing by Bernadette Baum)

This story has not been edited by Firstpost staff and is generated by auto-feed.

Updated Date:

TAGS:

also read

Greek police clash with protesters in rally against mandatory vaccinations
World

Greek police clash with protesters in rally against mandatory vaccinations

ATHENS (Reuters) - Greek police used teargas and water cannon to disperse people who had gathered in central Athens on Saturday to protest against mandatory COVID-19 vaccinations. More than 4,000 people rallied outside the Greek parliament for a third time this month to oppose mandatory inoculations for some workers, such as healthcare and nursing staff.

Two Turkish soldiers killed in attack in northern Syria
World

Two Turkish soldiers killed in attack in northern Syria

ISTANBUL (Reuters) - Two Turkish soldiers were killed and two were wounded in an attack on their armoured vehicle in northern Syria, and Turkish forces immediately launched retaliatory fire, Turkey's defence ministry said on Saturday. "Our punitive fire against terrorist positions is continuing," the statement on Twitter on said. It did not specify where the attack occurred, but media reports said it was in the al-Bab area.

Brazilians take to streets again to demand Bolsonaro's impeachment
World

Brazilians take to streets again to demand Bolsonaro's impeachment

By Marcelo Rochabrun SAO PAULO (Reuters) - Protesters took to the streets in several Brazilian cities on Saturday to demand the impeachment of far-right President Jair Bolsonaro, whose popularity has fallen in recent weeks amid corruption scandals against the backdrop of the pandemic. This week, news broke that Brazil's defense ministry told congressional leadership that next year's elections would not take place without amending the country's electronic voting system to include a paper trail of each vote. Bolsonaro has suggested several times without evidence that the current system is prone to fraud, allegations that Brazil's government has denied