| A Trader’s View of the NYSE Entrance |
The New York stock market rose slightly as it digested recent comments from US Federal Reserve (Fed) officials.
On the 18th, Eastern Time, on the New York Stock Exchange (NYSE), the Dow Jones Industrial Average finished 30 trading at 33,743.69, up 199.37 points (0.59%) from the battlefield.
The Standard & Poor’s (S&P) 500 index closed at 3,965.34, up 18.78 points (0.48%) from the previous day.
The Nasdaq ended trading at 11,146.06, up 1.11 points (0.01%).
The three main indexes showed an upward trend, but the Dow ended the week with a weak hold, while the S&P 500 and Dow index fell 0.7% and 1.6%, respectively, showing weakness for the week.
On this day, the market made cautious moves while digesting the comments related to tightening from Fed officials.
After the release of the Consumer Price Index (CPI) in October, expectations about a possible change of direction by the Fed increased, but recent comments from Fed officials have tempered those expectations.
The previous day, the President of the Federal Reserve Bank of St Louis (Fed) James Bullard suggested a sufficiently restrictive interest rate level of 5% to 7%.
Bullard said the rate hikes so far have had only a limited impact on inflation and are not yet sufficiently restrictive.
Susan Collins, president of the Federal Reserve Bank of Boston, also emphasized the need for further rate hikes, saying on the same day that “restoring price stability remains the current priority, and there is clearly more work to be done .”
“A 0.75 percentage point rate hike is still on the table,” Collins said, and “all potential increases should be on the table in determining whether they are tight enough.”
This is interpreted to mean that the possibility of a 0.75 percentage point rate hike should not be completely ruled out even at the Federal Open Market Committee (FOMC) in December.
According to the comments of President Bullard the day before and President Collins that day, the possibility that the Fed will raise the base rate by 0.75 percentage points at the December meeting is about 24%, up from the level 15% the previous day.
[ 이유진 기자 / ses@mk.co.kr ]
[ⓒ 매일경제TV & mktv.co.kr, 무단전재 및 재배포 금지 ]
