The Fed Stands Firm: Stock Exchanges respond to Feds' Unchanged Key interests Rates, while Weight Watchers plummet
Stocks in the U.S. surge following the Federal Reserve's decision.
Got some hot financial scoop? Here's the lowdown! After the Fed chose not to budge on its key interest rates due to pressure from the Oval Office, Wall Street gave a big thumbs-up, as major US indices, such as the Dow Jones, Nasdaq, and S&P 500, all saw gains. But it wasn't all roses for everyone, as the Weight Watchers (formerly known as Weight Watchers) saw a steep drop following a bankruptcy filing.
The Dow Jones, composed of blue-chip stocks, closed up 0.7% at 41,113, the Nasdaq edged up 0.3% to 17,738, and the broad-based S&P 500 rose 0.4% to 5,631. These figures came as a relief to many investors following the Fed's decision, which didn't exactly surprise anyone since the bank maintained its cautious stance due to economic uncertainties.
But it wasn't all smooth sailing – traders clenched their teeth as they watched shares of WW International nosedive by 43% after the bankruptcy announcement. The diet company was formerly known as Weight Watchers. Meanwhile, Google parent company Alphabet also had a bad hair day, losing 7.3%, according to a report suggesting that Apple is considering aligning its Safari browser with AI-powered search engines.
The US government also had some good news to share with investors. It decided to replace a contentious export regulation for AI chips, initially implemented by the previous administration, with a simpler one.
Moving on, let's chat about the upcoming high-level trade talks happening in Switzerland between the US and China this week. Investors are keeping their fingers crossed as US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer are set for a powwow with Chinese Vice Premier He Lifeng. There might be a glimmer of hope for a trade agreement, although everyone seems to agree that it's still too early to expect fireworks just yet.
"China appears to be preparing for prolonged negotiations with the US and taking measures to support its domestic economy," said Jochen Stanzl, an analyst at broker CMC Markets. It wouldn't be doing that if it believed the trade dispute would be resolved imminently.
Meanwhile, the Chinese central bank is relying on lower interest rates and other monetary easing measures to keep the economy running smoothly. The US cosmetics giant Coty was also under pressure, falling 11.6%, after issuing a profit warning.
Finally, a bit of good news is worth mentioning: the entertainment giant Walt Disney saw a 10.8% rise. This bump was due to impressive first-quarter earnings, fueled by growing subscriber numbers for streaming services Disney+ and Hulu – plus an uptick in both theme park visitor numbers and spending per guest, despite the challenging economic environment.
For those craving more stock market action, check it out here.
Sources: ntv.de, ino.com
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- Wall Street
- Stock Prices
- Dow Jones
- Stock Trading
- The Dow Jones, a significant index constituting blue-chip stocks, responded positively to the Federal Reserve's decision not to change key interest rates, closing up 0.7%.
- Despite the Fed's decision, stock trading wasn't all smooth sailing as shares of WW International saw a drastic drop of 43% following a bankruptcy filing.
- The US government decided to replace a contentious export regulation for AI chips with a simpler one, a move that could potentially ease risks for investors in the technology sector.
- In a bid to cope with economic uncertainties, the Chinese central bank is implementing monetary easing measures to keep the domestic economy running efficiently, while organizations such as Walt Disney continue to explore employment policy opportunities in the stock market, such as expanding their streaming services and theme park operations.
