Wall Street rises – Powell did not give accurate signals about the rate of the Fed

Jan 10 (Reuters) – Wall Street’s major indexes rose on Tuesday as Microsoft and Amazon stocks strengthened as investors weighed in on Federal Reserve Chairman Jerome Powell’s speech that he did not specify monetary policy outlook.

Shares of Microsoft Corp rose 1.4% after reports that the tech giant is in talks to invest $10 billion in ChatGPT creator OpenAI.

Microsoft’s S&P 500 information technology sector gained 0.3%, while Amazon’s 2.2% surge pushed the consumer goods sector higher.

The US Federal Reserve’s independence from political influence is key to the regulator’s ability to fight inflation, Powell said on Tuesday.

Powell’s words failed to reassure investors, alarmed by hawkish remarks by two Fed officials the day before.

“Powell hasn’t impacted the market in any way, and the fact that he’s emphasizing the need for political independence in fighting inflation is definitely positive for the markets,” said Peter Cardillo of Spartan Capital Securities. “But he didn’t hint at what the Fed was going to do about rates in the future.”

Markets are still pricing in a 75% chance of a 25 basis point rate hike at the next Fed meeting, with the final rate expected to be just below 5% by June.

The Dow Jones index rose by 0.19% to 33.581.68 points by 19:01 Moscow time, the S&P 500 index rose 0.12% to 3.896.57 points, and the Nasdaq – by 0.18% to 10.654.58 points.

The original message in English is available at the code: (Ankika Biswas and Amruta Khandekar in Bangalore, translated by Tomas Kanik)

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