In a bullish session on Thursday, the stock market saw a rally in stocks as the Federal Reserve indicated the likelihood of another rate hike, while investors meticulously analyzed the latest round of corporate financials. The Nasdaq, S&P 500, and Dow Jones Industrial Average all concluded the day with robust gains, spurred by the Fed’s decision to maintain interest rates at their highest level in over two decades. Federal Reserve Chair Jerome Powell’s remarks strongly hinted at a continuation of steady rates through December.
According to the CME FedWatch Tool, traders are now estimating an 85% probability of no additional Fed rate hikes in the remainder of the year, a notable increase from the 59% projection prior to the policymakers’ meeting. This shift in market sentiment reflects growing confidence in the Fed’s cautious approach.
As attention turns to the ongoing earnings season, Apple’s report, slated for release after trading hours, takes center stage. Analysts are closely monitoring the company’s performance in China, particularly the status of iPhone sales, and assessing broader trends in consumer spending. Reports from leading U.S. tech companies have presented a mixed picture thus far, heightening anticipation for Apple’s results.
Starbucks shares surged by an impressive 10% following their quarterly financials, which surpassed market expectations for both revenue and earnings. Meanwhile, e-commerce platform Shopify reported a return to profitability in the third quarter, leading to a more than 20% surge in their stock value.
In summary, Thursday’s rally of stocks reflected investor confidence in the Federal Reserve’s trajectory towards concluding its campaign of rate hike. The Nasdaq, S&P 500, and Dow Jones Industrial Average, all heavily influenced by the technology sector, concluded the day with significant gains. Traders are now leaning towards the belief that there will be no further rate hikes for the remainder of the year. The spotlight has turned to the ongoing earnings season, with a specific emphasis on Apple’s report and its potential impact on consumer spending and the technology industry. Notably, companies such as Starbucks and Shopify have already reported robust results, further boosting confidence and positivity in the market.
