Tech Charge
Jerome Powell is back at it again, and this time his actions and words have given the market a boost, specifically the tech sector. If you recall a few months ago, rising fed interest rates had pushed tech and other growth-based stocks down into the dumps. However, as of today, these same stocks found some stable ground grow. Powell gave investors reassurance that the central bank was keeping an eye on inflation but is not urging to hike rates. The NASDAQ, the US-based tech index closed at all-time highs Tuesday in reaction to this news. The impact was even international where Asia-Pacific shares outside Japan rose 0.4% and Japan’s Nikkei rising 0.3%.
Powell gave his reasoning to not hike the interest rate in the interest of the Nations’ economic well-being. Specifically, he reiterated that the Fed’s goal was to conduct a broad labor market recovery and that inflation fears alone are not enough to cause rates to rise. Specifically, Powell said in a hearing before a U.S. House of Representatives panel that “We will wait for evidence of actual inflation or other imbalances.” Not only did the NASDAQ react well to this news but the yield on benchmark 10-year U.S. Treasuries moved lower and the dollars rising was slowed.
What do you think of Jerome Powell? And do you follow what he says and does when investing?
I am not a financial advisor and my comments should never be taken as financial advice. Investments come with risk, so always do your research and analysis beforehand.
