Stocks rallied on Thursday after a muted opening on the heels of the Federal Reserve’s “hawkish hold” on Wednesday, which suggested more rate hikes are likely later this year while rate cuts in 2023 are now off the table.
At the closing bell, the S&P 500 (^GSPC) was up about 1.2%, while the Dow Jones Industrial Average (^DJI) added 400 points, or 1.2%. The technology-heavy Nasdaq Composite (^IXIC) climbed roughly 1.1%.
Early Thursday, data showed retail sales in May were stronger than expected in the US. Investors were also digesting news from the European Central Bank, further raising rates as monetary policy remained tight across developed markets.
Overnight, however, the People’s Bank of China cut its medium-term borrowing rate for the time since August.
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