Fed hikes interest rate by 25 bps to 5.25-5.5% , Powell press conference lifts markets

It was expected by the financial community this rate hike, as the FED gave a break during the previous FOMC.

Here a short summary of the Minute :

The US economy has been growing moderately, with strong job gains and low unemployment. However, inflation remains high. The Federal Reserve has raised the target range for the federal funds rate to 5-1/4 to 5-1/2 percent to support its goal of achieving maximum employment and 2 percent inflation. They will continue to assess economic data and adjust monetary policy if needed. The Committee is committed to reducing inflation and closely monitoring risks that could impact their goals.

Asset classes reacted in a calm way but during press conference indices turned in positive territory. with moderate intraday ranges: S&P 500 up 10.01 points or 0.22%% to 4,577.44, VIX index at 13.46 losing -2.89%. EUR/USD up 0.27% at 1.1085 and XAU/USD up by 0.49% to 1,974.70.

The financial community is betting that today rate hike would be the last one of a 525 bps total rate hike cycle.

Microsoft weight on Nasdaq cannot be ignored as the tech giant is losing 4.25% after yesterday earning release at market closed. MSFT both revenues and EPS were above analysts estimates. A profit taking from recent all time high seems the most plausible reason as blaming the slowdown of Azure seems a bit unreasonable given its place on the AI race. Nasdaq Composite is gaining the 0.17% to 14,169.26