Markets rallied, closed sharply higher all attributed to the Fed’s taper acceleration

Updated time: 19 Jan, 2022, 07:41 (UTC+04:00)

Markets rallied, closed sharply higher all attributed to the Fed’s taper acceleration by a more increased amount of $30 billion/month instead of previously said $15 billion. Timeline was also noted, with three rate hikes next year, probably in spring 2022, followed by another three in 2023. Bets on increase in Bank Rate remained with eyes watched on central bank meetings.

Most indexes successfully compensated for last week’s losses, due to improved investors’ risk sentiment.

S&P 500 climbed 1.63%, Dow Jones gained 1.1% while Nasdaq benefitted 2.1%.

Stocks:

Tech largely gained. Big companies sparked the broader market rebound.

Consumer discretionary recovered thanks to Tesla’s cutting losses.

Health increased with a promising 2022 outlook.

The only exception is #energy that remained under pressure, despite higher #oil price.

Currencies:

After the Fed's announcement, the dollar held tight, the euro rose 0.25%, the pound lifted 0.27% while the AUD increased 1%.

Crypto:

BTC jumped over $49,000. ETH and other altcoins also bulled. This result is due to the Fed bankers signaling they may raise short-term interest rates to battle against hot inflation. However, things are not yet set in stone as if the Fed turns hawkish in tightening the monetary policy, risk assets will be bearish, including crypto.

Markets rallied, closed sharply higher all attributed to the Fed’s taper acceleration

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