The Fed raised interest rates by 75 basis points, the largest increase in 28 years: Apple, Tesla and other major stocks rose in general

On June 15, local time, the much-watched Federal Reserve interest rate decision was released, and the market’s earlier consensus to raise interest rates by 75 basis points came true. Federal Reserve Chairman Jerome Powell pointed out that U.S. inflation unexpectedly rose in May and is now moving quickly to cool it. This rare and large rate hike is not the norm, and there is a possibility of a 50 basis point or 75 basis point rate hike at the next meeting.

Although the rate hike this time is the strongest since the Fed’s single since 1994, after Powell’s remarks, the market generally showed relative optimism. The three major U.S. stock indexes rebounded strongly after a high dive, and finally closed sharply higher. As of the close, the Dow rose 1%, ending a 5-day losing streak, the Nasdaq rose 2.5%, and the S&P 500 rose 1.46%.

The Federal Open Market Committee (FOMC) statement published on the Fed’s website showed that U.S. economic activity has picked up after a first-quarter slump. Job gains have been significant in recent months, and unemployment has remained low. Inflation is high, reflecting supply and demand imbalances related to the pandemic, as well as high energy prices and broader price pressures.

With the United States currently facing the worst inflation situation in 40 years, market expectations for aggressive interest rate hikes by the Federal Reserve have increased ahead of this meeting. Major banks and investment banks such as JPMorgan Chase and Wells Fargo are widely expected to announce that the Federal Reserve may raise interest rates by 75 basis points to curb another surge in inflation.

In March, the Fed raised its target range for the federal funds rate by 25 basis points from near zero, kicking off a tightening cycle to curb inflation. At the beginning of May, the Fed announced another 50 basis points of interest rate hike, and hinted that it may raise interest rates by 50 basis points each time in June, July and September this year.

On the board,Large technology stocks generally rose, Amazon, Tesla rose more than 5%, Nvidia rose 4.36%, Facebook parent company Meta rose 3.43%, Apple, Microsoft, Google rose more than 2%.Tesla’s stock price approaches $700, Nvidia’s market value returns to above $400 billion.

Most popular Chinese concept stocks rose, the Nasdaq China Golden Dragon Index rose 2.01%, Weilai rose 7.77%, Xiaopeng Motors rose 4.85%, Alibaba, JD.com, Baidu rose more than 2%, Pinduoduo, ZTO Express fell more than 1%, NetEase fell 2.23%.

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