After cooling down
After the cooling down of the previous night, the market cooled down again last night in another format. For the response to the FOMC meeting on Wednesday was a little irrational. Following the announcement of an interest rate increase by 75 basepoints, the market went down for half an hour, which is why the writer showed the intraday chart on the first page. This is the first time the writer showed an intraday chart of Dow Jones. The drop was normal, but after the press conference the rise was abnormal.
Several financial journalists raised questions to Powell, those were all the hottest topics that the market concerned most. People expected after this that the raise in interest rate would also be 75 basepoints in July, but Powell said would be either 50 or 75 basepoints, not yet fixed. The market responded so optimistic and rebounded up. They forgot in May, Powell disclosed the rate hike of Jun should be base 50 points but now turned out to be 75 base points. It’s a changing world after all, what will happen in July does not lie in what Powell says now, but in that economic situation.