Fed decision drives Dow Jones, S&P 500 and Nasdaq: Wall Street on the rise

Fed decision drives Dow Jones, S&P 500 and Nasdaq: Wall Street on the rise

According to a report from amp2.wiwo.de, the most important indices on the New York Stock Exchange recorded a significant increase. Starbucks shares proved in demand while Moderna came under pressure. The reason for the positive mood was the US Federal Reserve's decision to pause interest rates again. Fed Chairman Jerome Powell's statements fueled hopes that the end of monetary policy tightening could have been reached. Analysts expressed cautious optimism and predicted that the Fed may be done raising interest rates for now.

Historically, the Fed's decision to keep interest rates low often has a positive impact on the stock market. Low interest rates mean lower costs of borrowing, which usually leads to higher investments and consumption. This, in turn, can increase companies' profit expectations and thus strengthen share prices. The positive reactions to the balance sheets and forecasts of companies such as Starbucks, Qualcomm and Shopify show that market participants are optimistic.

On the other hand, there was disappointing news from companies like Moderna, Solar Edge, Peloton and Airbnb, which either reported lower revenue expectations or unexpected loss reports. Such events can have a negative impact on the market as investors may be less inclined to hold shares of companies that announce bad news.

Overall, the Fed's decision and the reactions of companies in the market are positive. However, investors should continue to monitor company developments and future news to make informed decisions.