Wednesday, February 28

Wall Street Celebrates Independence Day, Stocks Closed

The stock exchanges in New York will remain closed all day Monday due to the celebration of Independence Day in the United States. Wall Street opens its doors again on Tuesday.

 

The shortened US trading week will mainly be dominated by the Federal Reserve meeting minutes, which will be released on Wednesday. The Fed raised interest rates by 0.75 percentage points at its last rate meeting in June. That was the strongest increase since 1994. Before that, the Fed also raised interest rates twice.

Interest rates are expected to be raised again in July to combat high inflation. Investors hope to find signals in the notes as to whether interest rates will rise again by 0.75 percentage points this month or whether the Fed considers a smaller rate step sufficient.

At the end of the week, the focus shifts to the US government’s monthly jobs report. Then it may become clear whether the interest rate hikes, which in addition to inflation also slow economic growth, will already have consequences for job growth in the US. A strong labour market gives the Fed more room to raise interest rates more aggressively.

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