U.S. stocks ended with a mixed performance on Thursday after the Federal Reserve raised interest rates for the second time this year. The Dow Jones Industrial Average edged slightly higher, while the S&P 500 and Nasdaq Composite closed lower.
Sector Performance
The financial sector generally benefited from the rate hike, as higher interest rates can boost bank profits. However, technology stocks faced headwinds, contributing to the Nasdaq’s decline. Energy stocks also struggled as oil prices remained under pressure.
Fed’s Outlook
The Federal Reserve signaled its intention to continue gradually raising interest rates in the coming months, citing a strengthening economy and rising inflation. However, some analysts expressed concerns about the potential impact of higher rates on economic growth.
Market Sentiment
Overall, market sentiment remained cautious as investors digested the Fed’s decision and awaited further economic data. Trading volume was moderate, suggesting a lack of strong conviction in either direction.
Key Takeaways:
- The Federal Reserve raised interest rates by 0.25%.
- Financial stocks generally performed well.
- Technology stocks faced downward pressure.
- The Fed plans to continue gradual rate hikes.
