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.