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
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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US stocks rebound as Fed tightens monetary policy

The US stock market observed another day of green on Tuesday following some Hawkish remarks from the Fed Chair on imminent tightening of the monetary policy. The headlines was well received and had a overall positive effect on the US stock market as investors consider it a good time to invest in stocks.

Most stock prices jumped exceedingly in value yesterday alone. US10, for instance, rose by 2.39% in just a single day, the highest intraday level witnessed so far since May 2019. Dow Jones Industrial Average added 1% to reach a new high at 34,808.20. Nasdaq was up by 2.1% to a new price at 14,109.10, S&P500 was increased by 1.2%, getting a new high at 4,512.407.

Similarly, Nike (NKE) shares rose by 2.4% to emerge as the second-highest former on the Dow collections. Tesla was up by 8.2% to occur the highest performed stock on the S&P 500 category. Alibaba rose by 11% extra value addition and so on for other US stocks.

Is this the right time to buy stocks?

Many may consider the recent news for an imminent interest rate hike a perfect opportunity to invest in US stocks, as a natural scarcity to be created for the dollar due to the rate hikes will lead to further appreciation for the US stock markets.

The Fed Chair hinted last week that nothing could stop the Fed from implementing a rate hike policy and said earlier on Monday that the FOMC would immediately act to combat the increasing rate of inflation with a targeted 50-basis-point increase in the Federal fund rate and possibly move the rate higher if necessary, thus raising interest rates higher than expected.

The long-term effects of these hawkish comments from Powell are incredibly bullish. Many Economic experts would consider this the best time to invest in US stocks.

Last Updated: 24/03/2022

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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