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The vast majority of retail client accounts lose money when trading CFDs.

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54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Stock & Index yield higher returns from Fed's 50bps interest rate hike

The US stock market yielded massive returns on Thursday after the Federal Reserve raised the interest rate by 50 basis points, the highest rate ever in the past 22 years.

Ordinarily, the Fed's hawkish stance yesterday ought to have caused a significant fall in the stock market and other risky investments, but the opposite has been the case.

The news gave the stock markets and other risky assets, including gold and crypto, a strong revival after a prolonged fall.

Some commentators have explained that the market took the opposite direction because Powell's speech bore a subtle dovish undertone as investors had expected a higher interest rate hike by at least 75 basis points.

Here, Fed Chair Jerome Powell made it clear that the Fed is not "actively considering" a 75 basis point rate hike. The reason for this, as he stated, is because the Fed wants to meet up with the market expectations. Hence, they preferred to go slower than what the investors counted on, which is a 75 basis point increase in the interest rate hike.

Consequently, the dollar index (DXY) had fallen by over 0.90% from its ATH at 105.

Therefore, the stock market was favoured by the Fed's decision. Dow Jones Industrial (DJI) rose by 2.81%, adding $932 to its market price. Google rose by 4.20%. Amazon is up by 1.37%, Microsoft corporation is up by 2.91%,

Tesla rose by 4.77% adding $43.37 extra, and AAPL gained 4.10% adding an extra $6.54. Netflix gained 2.07% by adding $4.14. The meta media platform Facebook is up by 5.37%

On indices, S&P 500 Index gained 2.99% adding an extra $124.10, US100 Index gained 3.41% adding an extra $445.

The market is currently absorbing gains from the Asian session. However, the general bullish market sentiment towards risky assets seems to have been restored.

Last Updated: 05/05/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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