The Federal Reserve increased interest rates by another quarter point and expressed optimism that the economic recovery remains on track, providing a spark for a late-day rally on Wall Street.In a widely anticipated move, the Fed boosted the benchmark federal funds rate to 1.5 percent, the second increase in about two months.Most observers had expected the rate hike despite some weak economic data, including two straight months of sharply lower employment growth.The Fed remained upbeat about growth as well.In a statement, it said high energy prices have muted spending by consumers and corporations, but that the economy remains “poised to resume a stronger pace of expansion going forward.”The stock markets, which were trading higher ahead of the Fed meeting, went into rally mode after the afternoon announcement.The Dow climbed 130.01, or 1.3 percent, to 9,944.67.The Nasdaq was the day’s biggest percentage winner, climbing 34.06, or just under 2 percent, to 1,808.70.The S&P 500 1,079.04 finished the day up 13.82, or 1.3 percent.After the closing bell, attention quickly turned from Alan Greenspan’s Fed announcement back to corporate earnings, with Cisco Systems and Walt Disney both due to report.Both stocks traded higher ahead of their reports.Cisco said profit rose to $1.4 billion… Read full this story
- Fed: Rates to stay ultra-low even after inflation picks up
- Petrol rate hiked by Rs 1.65 a litre in a fortnight, no change in diesel prices
- US STOCKS-Fed's inflation push lifts S&P 500, Nasdaq to new highs
- Fed's strategy shift to bind big central banks from Frankfurt to Tokyo
- US STOCKS-S&P 500 drifts near peak as tech losses weaken Fed-powered surge
- Profit taking to weigh on local market, but September may be bright
- Framework complete, Fed faces election year call on next steps
- U.S. economy needs more Fed stimulus 'in coming months,' Brainard says
- Fed's inflation push lifts S&P 500, Nasdaq to new highs
- Fed says it will keep stimulus coming for years
Markets Rally on Fed Rate Hike, Comments have 312 words, post on www.technewsworld.com at August 10, 2004. This is cached page on X-Buy. If you want remove this page, please contact us.