Dow Jones Industrial Average futures jumped more than 500 points today, indicating Wall Street stocks will rebound tonight. After a heavy plunge last week
At 5:53 p.m. Thai time, the Dow futures index gained 501 points, or 1.68%, to 30,370 points.
The New York Stock Exchange was closed yesterday. On Juneteenth, a day to commemorate the end of the slave trade in America.
The Dow was down 4.8 percent last week, the Nasdaq was down 4.8 percent as well, while the S&P 500 was down 5.8 percent, its biggest weekly loss since March 2020. and has entered a bear state It has dropped more than 23% from a record high in January.
Federal Reserve Chairman Jerome Powell is due to deliver his semi-annual statement on monetary policy and economic conditions to Congress this week.
Powell will address the Senate Banking Committee on Wednesday, June 22, before addressing the House Financial Services Committee on Thursday, June 23.
Before giving such a statement The Fed submitted its semi-annual monetary policy report to Congress last week. The Fed signaled that it would not let anything hinder its efforts to combat inflation.
“The Monetary Policy Committee (FOMC) is committed to ‘Unconditional’ in price stabilization This is necessary to maintain a strong labor market.” The Fed stated in the report.
The use of the word “unconditional” in the report This indicates that the Fed is ready to take on the risks that may arise. so that the economy can avoid a worse situation from uncontrollable inflation that will damage the economy in the long run.
The FOMC raised the short-term interest rate by 0.75% to 1.50-1.75% at last week’s meeting. This was the biggest interest rate hike in 28 years, or since 1994.
In addition to its policy interest rate forecast (Dot Plot), Fed officials forecast interest rates to hit 3.4% by the end of the year. This indicates that the Fed will raise interest rates another 1.75% this year and it expects interest rates to rise to 3.8 percent by the end of 2023 and slow to 3.4 percent in 2024 while long-term interest rates remain. at 2.5%
With the Fed signaling a rate hike of 1.75% later this year, analysts are expecting a 0.75% rate hike in July and 0.50% in September, before only increasing it. 0.25% in November and December
By InfoQuest News Agency (21 Jun 65)
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