Stocks opened higher Thursday morning after the Federal Reserve on Wednesday signaled its rate hiking campaign may be nearing an end amid concerns about stability in the global banking system.
Shortly after the opening bell on Thursday, the S&P 500 (^GSPC) was up 0.9%, the Dow Jones Industrial Average (^DJI) higher by 0.6%, and the technology-heavy Nasdaq Composite (^IXIC) led the way, rising as much as 1.3%.
Other major assets on the move on Thursday included WTI crude oil, off 0.6% to trade near $70.50 a barrel. Crude oil slumped to its lowest level in nearly two years earlier this week amid worries over global demand and a rally in the dollar.
The 10-year Treasury yield was little-changed early Thursday, down about one basis point to trade near 3.49% after yields moved lower on Wednesday following the Fed’s latest economic forecasts suggested rate hikes are closer to ending than previously expected.
On Wednesday, the Fed raised the target range for its benchmark interest rate by 0.25% as expected, bringing the range for the fed funds rate to 4.75%-5%, the highest since October 2007.
Updated economic projections from the Fed, however, suggested only one more 0.25% rate hike is likely this year, a forecast that is in-line with what the central bank said in December but a reversal from Fed Chair Jay Powell’s signaling earlier this month that rates would likely need to go “higher than previously anticipated.”
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