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Stock Market Today: Dow Rallies as Yield Slips Boost Tech After Larger Fed Hike

Stock Markets Jun 15, 2022 04:16PM ET
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© Reuters

By Yasin Ebrahim

Investing.com -- The Dow jumped Wednesday, led by growth stocks including tech as Treasury yields slipped after the Federal Reserve delivered its biggest rate since 1994.     

The Dow Jones Industrial Average gained 1%, or 303 points, the Nasdaq was up 2.5%, and the S&P 500 rose1.5%.

The Fed raised its benchmark rate by a larger than expected 0.75%, with Fed Chairman Jerome Powell admitting that the recent upside inflation had forced the central bank's hand into tightening monetary policy by more than expected. 

In the press conference that followed, Powell said there was a need to "front load" rate hikes, signaling the aggressive hikes now may not be followed up in the future with similarly aggressive hikes.  

Treasury yields, which had gained momentum in the days leading up to the decision, fell sharply, paving the way for the growth stocks to rack up gains. 

Apple (NASDAQ:AAPL), Amazon (NASDAQ:AMZN), Meta Platforms (NASDAQ:META), Alphabet (NASDAQ:GOOGL) and Microsoft (NASDAQ:MSFT) were sharply higher.

Semiconductor stocks were also in ascendency, led by Advanced Micro Devices (NASDAQ:AMD) and NVIDIA (NASDAQ:NVDA).

The recent decline in megacap valuations together with expectations that Fed hawkishness is nearing a peak, has attracted some on Wall Street to return to growth sectors of the market.

"As we're getting closer and closer to seeing peak hawkishness, potentially by the end of the summer, and given where valuations have gone for this [growth] area of the market, the market is ultimately compelling," Timothy Chubb, Chief Investment Officer at Girard Partners, told Investing.com in an interview on Thursday. "We have been positioned that way now for the last month."

Beaten up consumer stocks clawed back some of their recent losses, supported by travel and leisure stocks. 

Caesars Entertainment Corporation (NASDAQ:CZR), Norwegian Cruise Line (NYSE:NCLH) and Penn National Gaming (NASDAQ:PENN) were up more 4%.   

Energy was the sole sector in the red as data showing U.S. weekly crude inventories unexpectedly increased as domestic production jumped to its highest level since April 2002.

APA (NASDAQ:APA), Exxon Mobil Corp (NYSE:XOM), ONEOK Inc (NYSE:OKE) were among the biggest decliners, down by about 1%.

Stock Market Today: Dow Rallies as Yield Slips Boost Tech After Larger Fed Hike
 

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Comments (15)
marlow seay
marlow seay Jun 15, 2022 9:34PM ET
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they said because the market takes it as , at least the fed is doing something
marlow seay
marlow seay Jun 15, 2022 9:30PM ET
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shame on Russia causing inflation
Jack AAA
Jack_A Jun 15, 2022 9:28PM ET
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rally for a bigger crash!
Nick Shern
Nick Shern Jun 15, 2022 9:17PM ET
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Jump after rate decision means rate increase is still not engouh, if we can not see the slow down of inflation in the next cpi report market will crash extremely intensive. Fed is incompetence.
PAULIUS MATIUSOVAS
PAULIUS MATIUSOVAS Jun 15, 2022 8:31PM ET
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upsidown world..when it looks to crash, sheep build it up
CT OREN
CT OREN Jun 15, 2022 8:22PM ET
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Thanks fed for the 0.75% hike. Next we hope the recession will really come. Let’s pray.
Sebastien Muller
Sebastien Muller Jun 15, 2022 6:36PM ET
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So funny how bullish is the market even with bad news. Lol you deserve to be ruiend
Chad Richer Than You
Chad Richer Than You Jun 15, 2022 6:36PM ET
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Learn English you stu. pid European
CS Greer
CSGreer Jun 15, 2022 6:36PM ET
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Chill. It's just a typo. The "e" got typed before the "n". Take some blood pressure meds or something.
Chad Richer Than You
Chad Richer Than You Jun 15, 2022 6:27PM ET
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Who cares if the prices are high for you?! What matters is that the likes of me make more money!!
Mitchel Pioneer
Mitchel Pioneer Jun 15, 2022 5:41PM ET
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Just another day in the US Ponzi Scheme, where flagrant manipulation in broad daylight has become accepted practice.  The SEC turns a blind eye while Wall Street continues to financially dismantle the middle class.  This does nothing but further cement this laughable "market's" place in history as the greatest financial fraud in the world.
Kerry Ditto
Kerry Ditto Jun 15, 2022 5:06PM ET
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housing market will collapse due to higher rates. That's major failure of economic engine. Stock market crash continues.
Jeff Franklin
Jeff Franklin Jun 15, 2022 5:06PM ET
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Collapse or just cool off? Its been way overheated for years and needs a rest. Ehy would slightly higher rates cause a collapse?
 
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