US Federal Reserve surprises investors - DAX and Wall Street on the rise

US Federal Reserve surprises investors - DAX and Wall Street on the rise

After the Federal Reserve's (Fed) interest rate decision, investors jumped in. The DAX passed an important mark, while Wall Street also rose. Hopes for an end to interest rate hikes in the US buoyed Wall Street, with Fed Chairman Jerome Powell suggesting the central bank could now act more cautiously. Investors are now wondering whether they can already deal with the issue of interest rate cuts. Falling key interest rates would be desirable for the stock market as they would support the economy and make stocks more attractive. Some experts expect the time to cut rates will come sooner rather than later. The third quarter earnings season is going well, with many companies in the US beating earnings expectations. Experts tend to be optimistic, but also see uncertainties, such as the Middle East conflict. The DAX closed higher the day before, and HSBC's chart technicians see further upside potential. Speculation about an end to the interest rate hikes influenced the dollar, the euro gained. Oil prices rose due to investors' increased risk appetite. Siemens Energy's recovery rally continued, and Fresenius shares also rose. The online fashion retailer Zalando lowered its sales targets for the full year. In addition, Lufthansa shares recorded record sales and a jump in profits in the third quarter. Fresenius Medical Care and Scout24 also announced positive profit forecasts. Klöckner & Co bought the US metal components manufacturer Industrial Manufacturing Services. The Danish drug manufacturer Novo Nordisk achieved record results due to high demand for the weight loss drug Wegovy. Shell profitierte von höheren Raffineriemargen und gestiegenen Ölpreisen, während der Chipkonzern Qualcomm eine Erholung des Smartphone-Marktes signalisierte.
According to a report from www.tagesschau.de

The positive reports about a possible end to interest rate hikes in the USA have triggered a positive mood on the markets. Investors are optimistic that the economy will be supported by falling key interest rates and that stocks will become more attractive. This leads to price gains on the stock markets, such as the DAX and Wall Street. The experts also expect further price gains due to good corporate profits in the third quarter. However, they are also cautious because of uncertainties such as the Middle East conflict. Speculation about an end to interest rate hikes has an impact on the dollar, which is losing value and strengthening the euro. This may lead to further impacts on the forex market. Oil prices are rising due to investors' increased risk appetite, but also due to the falling dollar. Companies in various industries, such as Siemens Energy, Lufthansa and Novo Nordisk, are recording positive results and are optimistic about the future. Despite the positive developments, there are also uncertainties, such as the sluggish real estate market and the limited availability of the weight loss drug Wegovy. Overall, the situation on the markets and in the financial sector remains exciting and it remains to be seen what further effects the current developments will have.