US stocks looked set to recoup some of their losses on Thursday after Federal Reserve Chairman Jerome Powell put a lump of Christmas coal in the markets by signaling that steady inflation meant investors We should not expect deep cuts in interest rates Next year.
Futures tracking the Dow Jones Industrial Average rose 321 points, or 0.8%. S&P 500 futures rose 0.8%, and contracts tied to the tech-heavy Nasdaq 100 rose 0.7%. All three indexes fell on Wednesday, with Powell tightening pressure The Dow Jones sank By 1100 points, achieving his longest losing streak in half a century.
A limited recovery will not help ease the gloomy mood on Wall Street. The Fed stuck to the script by cutting interest rates by a quarter point, but Powell delivered a message no one wanted to hear: With inflation still above the central bank’s 2% target, investors should only expect borrowing costs to be cut twice. Next year.
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