Following Fed Chair Jerome Powell's warning about a potential rate rise, stocks differ

 Following Fed Chair Jerome Powell's warning about a potential rate rise, stocks differ

The tech-heavy Nasdaq rose 2.1 percent and the Dow finished the day higher than it had the day before, after the previous day's decline due to comments made by Federal Reserve Chair Jerome Powell that the US central bank "will not hesitate" to increase interest rates again if needed.

The Fed and ECB both indicated at their most recent meetings that they will hold off on raising interest rates for a longer period of time if inflation stays over their two percent objectives, despite the fact that consumer price increases have moderated.

November 10 saw Wall Street close higher but European stock markets retreated as investors processed central bank leaders' cautions that the fight against inflation was far from done.

The tech-heavy Nasdaq rose 2.1 percent and the Dow finished the day higher than it had the day before, after the previous day's decline due to comments made by Federal Reserve Chair Jerome Powell that the US central bank "will not hesitate" to increase interest rates again if needed.

However, after a significant slowdown in inflation last month, European Central Bank President Christine Lagarde predicted a "resurgence" of the inflation rate, which left markets lethargic and closed lower.

At an event hosted by the Financial Times, Christine Lagarde said that the ECB would not begin reducing interest rates for "the next couple of quarters."

The third-quarter data indicating the UK economy's stagnation also had an impact on London's FTSE 100 index, which finished the quarter down 1.3% while Frankfurt and Paris saw over 1% declines.

The Fed and ECB both indicated at their most recent meetings that they will hold off on raising interest rates for a longer period of time if inflation stays over their two percent objectives, despite the fact that consumer price increases have moderated.

Since last week, when Fed officials made hints that their protracted tightening cycle could be coming to an end, stocks have been rising.

On November 9, Powell, however, said at a meeting of the International Monetary Fund that success toward achieving two percent inflation was "not assured."

"If it becomes opportune to tighten policy further, we will not hesitate to do so," he said.

After rising the day before, the yield on US government bonds dropped on Friday for the 10-year Treasury note.

Experts speculated that the movement could have been caused by a ransomware assault that affected the US Treasury market and affected the US branch of ICBC, the biggest bank in China.