The Dow Jones Index continues to rise today. Recently, it has soared more than 600 points, breaking through the 30,000 line, as investors responded to the strong performance of banking stocks.
As of 11 a.m. GMT, the Dow Jones Industrial Average was 30,254.75, up 619.92, or 2.09%, while the S&P 500 was up 2.81% and the Nasdaq was up 3.50%.
Banking stocks jumped 2.6% today as they benefited from the interest rate rally.
Bank of America shares rose more than 4% after it revealed that The bank posted third-quarter profit and revenue that beat analyst expectations. with support from bond trading and interest income
Investors expect The Federal Reserve (Fed) will raise interest rates by 0.75% at its monetary policy meetings in November and December. After the release of the consumer price index (CPI) that was higher than expected.
The latest CME Group’s FedWatch Tool indicates that investors weighed 94.70% that the Fed would raise interest rates 0.75% to 3.75-4.00% at its Nov. 1-2 meeting and weighed 66.70% that the Fed would. Raised interest rates by 0.75% to 4.50-4.75% at the meeting on 13-14 Dec.
If the Fed raises interest rates by 0.75% in both November and December This will result in the Fed raising interest rates by 0.75% five times in a row after rising 0.75% in June, July and September.
Wall Street was also supported by the pound’s rally against the dollar today. Responds to the British government’s decision to lift previous tax cuts
The depreciation of the dollar helped investors ease concerns about the profits of listed companies with foreign earnings. The decline in 10-year US Treasury bonds, which are US government bonds used as a reference for global bond prices. This includes the US mortgage interest rate. It will give consumers more money for spending. and enabling companies to increase their investment and increase dividend payments to investors