- The US Federal Reserve announced that it had lifted the policy rate, federal funds rate, by 75 bps to the range of 2.25% - 2.5%.

- This decision came in line with the market expectation. In its policy statement, the Fed noted that it anticipates that ongoing increases in the policy rate will be appropriate.

- With the immediate reaction, the dollar has come under modest pressure and the US Dollar Index fell below 107.00.

- The latest 75-basis point rate hike from the Fed will make business debt of higher cost as the monthly payment on loans will be a bigger, if manageable, drain on cash flow. But higher debt interest payments are less significant for business owners than what the Fed’s fight against inflation may cause (A RECESSION).

Equities:

- Wall Street soared.  The Nasdaq jumped more than 4% in its biggest daily percentage gain since April 2020 as the Federal Reserve raised interest rates as expected and comments by Fed Chairman Jerome Powell eased some investor worries about the pace of rate hikes.

- The S&P 500 jumped 3.9% and also registered its biggest one-day percentage gain since April 2020. It closed at its highest level since June 8, with the technology sector giving the index its biggest boost.

- The Dow Jones Industrial Average rose 436.05 points, or 1.37%, to 32,197.59, the S&P 500 gained 102.56 points, or 2.62%, to 4,023.61 and the Nasdaq Composite added 469.85 points, or 4.06%, to 12,032.42.

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Currency Market:

- The US dollar plunged following the US Federal Reserve monetary policy decision. The dollar index was trading below 107 points.

- The EUR/USD pair jumped above 1.0200. Market temporarily put aside EU turmoil, which may soon make it back to the headlines. GBP/USD trades at 1.2160 at the end of the day, while commodity-linked currencies were the best performers. AUD/USD trades around the 0.7000 threshold, while USD/CAD fell towards 1.2800. Safe-haven assets also beat the dollar. USD/CHF is down to 0.9590, while USD/JPY slid to trade at 136.50.

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Commodities: Gold

- Gold price is hovering within a $1,740 - 1,750 range after facing weak blockades at around $1,740.00.

- Fed’s mild hawkish commentary has resulted in an upbeat market sentiment.

- The precious metal showed a strong rise from a low of $1,720.00 after the Federal Reserve announced a 75 bps rate hike in a row. Gold is trying to break through the $1,750 resistance level and if it fails to do so, it will fall to $1,730 an ounce.

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Commodities: Oil

- Oil rose more than a dollar a barrel on Thursday, extending gains from the previous session, supported by improved risk appetite among investors, while prices were supported by a decline in US crude inventories and a recovery in gasoline demand in the United States.

- Brent crude futures for September delivery rose $1.20, or 1.1% to $107.82 a barrel. WTI crude rose $1.44, or 1.5%, to $98.70 a barrel, after rising $2.28 a barrel in the previous session.
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