In a display of resilience, stocks experienced a rally on Thursday, rebounding from a subdued start following the Federal Reserve’s “hawkish hold” stance on Wednesday. The central bank’s message indicated a higher probability of rate hikes later this year, effectively ruling out any potential rate cuts in 2023.
By the closing bell, the S&P 500 index (^GSPC) had surged approximately 1.2%, accompanied by a 400-point, or 1.2%, increase in the Dow Jones Industrial Average (^DJI). The technology-focused Nasdaq Composite index (^IXIC) also climbed by around 1.1%.
At the start of Thursday, encouraging data revealed that retail sales in the US had exceeded expectations for the month of May. Additionally, investors were digesting news of the European Central Bank’s decision to further tighten monetary policy through rate increases, mirroring the prevailing trend in developed markets.
Notably, overnight, the People’s Bank of China implemented its first reduction in medium-term borrowing rates since August, introducing a potentially impactful shift in its monetary stance.
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Author Kristen Moran 
