JPMorgan Chase & Co. boss Jamie Dimon said the US central bank should have raised rates sooner as price pressures hit the global economy.
Stocks rose, the dollar fell and bonds rallied after the Federal Reserve made its biggest rate hike since 2000, with traders awaiting more clues from Chairman Jerome Powell about how aggressively the central bank will tackle inflation.
The fed it will begin allowing its holdings of Treasuries and mortgage-backed securities to shrink in June at an initial combined monthly rate of $47.5 billion, rising in three months to $95 billion. The key for markets will be whether Powell’s comment contains aggressive surprises that could stoke concerns about an economic slowdown. He will have his first in-person news conference in two years at 2:30 pm in Washington.
JPMorgan Chase & Co. boss Jamie Dimon said the US central bank should have raised rates sooner as price pressures weighed on the global economy. Treasury Secretary Janet Yellen sees a possible “soft landing” as the Fed moves to cut inflation. “I think we’re going to see solid growth in the next year,” she said in an interview at a Wall Street Journal event on Wednesday.
- Lyft Inc. and Uber Technologies Inc. reported quarterly results pointing to strong ride demand but failed to reassure Wall Street that the driver shortage that has cost companies hundreds of millions of dollars in bonuses was easing.
- Moderna Inc. reported revenue that beat expectations but said its 2022 COVID vaccine purchase orders were unchanged from what it reported three months ago.
- Marriott International Inc.’s earnings beat expectations as eager vacationers raised room rates, fueling a recovery in the hotel sector.
Key events this week:
- Bank of England Rate Decision and Briefing Thursday
- OPEC+ meets virtually for an ordinary meeting, on Thursday
- US jobs report for April, Friday
Some of the main movements in the markets:
- The S&P 500 was up 0.8% at 2:01 p.m. New York time.
- The Nasdaq 100 rose 1%
- The Dow Jones Industrial Average rose 0.8%
- MSCI World Index rose 0.3%
- The Bloomberg Dollar Spot Index fell 0.3%
- The euro rose 0.4% to $1.0565
- The British pound rose 0.2% to $1.2519
- The Japanese yen rose 0.2% to 129.84 per dollar.
- The 10-year Treasury bond yield decreased one basis point to 2.96%
- Germany’s 10-year bond yield was barely changed at 0.97%
- Britain’s 10-year yield was little changed at 1.97%
- West Texas Intermediate crude rose 5.2% to $107.73 a barrel.
- Gold futures little changed