BREAKING: US100 rebounds from fresh low despite Fed Mester hawkish remarks

5:25 PM 11 October 2022

Three major Wall Street indices managed to erase most of early losses after briefly touching levels not seen in more than two years amid mounting concerns that more hawkish FED and higher rates may have a negative impact on the US economy and company earnings.  There's no particular catalysts driving the sentiment shift and it seems that investors digested recent hawkish comments from FED Mester, which said that the biggest policy risk is that the Fed doesn't hike rates enough. In her opinion the Fed has yet to make any progress lowering inflation  and monetary policy needs to be moved to restrictive levels. Expects inflation to fall to 3.5% next year, to 2% by 2025, however this will be a painful process and growth over the next couple of years may be weak.

US100 briefly fell to the lowest level since September 2020, nevertheless buyers managed to regain control and launched a recovery move. Nevertheless as long as the index sits below resistance at 11000 pts, downward move may resume. Source: xStation5

Share:
Back

Join over 1 600 000 XTB Group Clients from around the world

The financial instruments we offer, especially CFDs, can be highly risky. Fractional Shares (FS) is an acquired from XTB fiduciary right to fractional parts of stocks and ETFs. FS are not a separate financial instrument. The limited corporate rights are associated with FS.
This page was not created for investors residing in Brazil. This brokerage is not authorized by the Comissão de Valores Mobiliários (CVM) or the Brazilian Central Bank (BCB). The content of this page should not be characterized as an investment offer in Brazil or for investors residing in that country.
Losses can exceed deposits