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Stocks rise on hopes Fed rate hikes are done after 0.25% raise, Dollar falls for 6th day in worst streak since 2021, SEC charges several celebrities over crypto, Ford EV business lost $2 billion in 2022, and more financial news.
Investors were optimistic after the Federal Reserve revealed its “dot plot,” which outlines its interest rate expectations, suggesting only one more rate hike of 0.25% is likely coming this year, Yahoo Finance reported.
S&P 500 futures were up 20 points or +0.50%, while Dow Jones futures advanced 61 points or +0.19%, and NASDAQ futures soared 123.75 points or +0.97% early on Thursday.
treasuries were down following the Fed raising the interest rate on Wednesday. The benchmark US 10-Year Treasury was down -0.012 for a yield of 3.488%, while the 2-Year Treasury slid -0.028 to yield 3.953% as of 9:43 AM EDT on Thursday.
In oil futures, WTI crude was up +68 % and trading at 40 a barrel, while the benchmark Brent crude was up +0.56% and trading at $77.12 a barrel 8:45 AM CDT.
The US dollar is on pace for its longest losing streak in 2 1/2 years, dipping for the 6th consecutive day after the Federal Reserve indicated it was close to ceasing its interest rate hikes after raising its benchmark fund by 25 basis points. Conversely, the euro rose in its sixth straight session, climbing to a seven-week high of $1.0930, while the dollar was down 0.1% at 102.35, its longest streak of daily drops since September 2021, Reuters reported.
Federal Reserve Chairman Jerome Powell said on Wednesday that if not for pressures in the banking system, it would have likely hiked the interest rate by 50 basis points, Yahoo reported.
“Inflation remains too high and the labor market continues to be very tight,” Powell said. “My colleagues and I understand the hardship that high inflation is causing, and we remain strongly committed to bringing inflation back down to our 2% goal.”
The Federal Reserve on Wednesday raised its benchmark interest rate by 0.25%, bringing interest rates within a range of 4.75%-5%.
The Fed also revealed its “dot plot,” which outlines the expectations from the central banks’ officials, which suggested that only one more interest rate hike of 0.25% is likely coming this year, Yahoo Finance reported.
Despite investors focusing on the banking crisis, which led to the second-and third-largest bank failures in US history, as well as the near collapse of Credit Suisse and many regional banks being on shaky ground, the Fed is still focused on fighting inflation.
A number of celebrities have been hit with charges by the Securities and Exchange Commission (SEC) for violating security laws and touting cryptocurrencies. Among eight notable names charged by the SEC are: Lindsay Lohan, Jake Paul, Ne-Yo, rapper Lil Yachty, rapper Soulja Boy, singer Austin Mahone, Akon, and adult film star Kendra Lust. All except Mahone and Soulja Boy have reached settlements with the SEC, Yahoo Entertainment reported.
Ford has revealed that its electric vehicle (EV) business lost $2.1 Billion in 2022 on an operating basis. However, Ford’s losses in that division were offset by more than $10 billion in operating profit between its fleet and internal combustion businesses, CNBC reported. The Detroit automaker said it expects similar results in 2023 and forecasted an adjusted loss of $3 billion for its EV unit while expecting adjusted earnings of $6 billion for its fleet business and $7 billion for its internal combustion unit.
