Nasdaq has biggest one-day jump since 2020 after Fed rate hike, Powell comments - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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US stocks rallied on Wednesday and the Nasdaq posted its biggest daily percentage gain since April 2020 as the Federal Reserve raised interest rates as expected and comments by Fed Chairman Jerome Powell reassured investors.

In addition, upbeat quarterly reports from Microsoft Corp and Alphabet Inc provided further encouragement about about the earnings season.The Fed raised the benchmark overnight interest rate by three-quarters of a percentage point.

Powell said in a news conference following the rate announcement that he did not believe the US economy is currently in a recession but that it is softening. “It was a calming statement coming on the heels of a day where you saw some earnings and revenues that were better than expectations, albeit expectations that were very tempered.”

Microsoft rose 6.7% after it forecast double-digit growth in revenue this fiscal year on demand for cloud computing services.

 

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