Fed impact on the New York Stock Exchange

At the close, the Dow Jones index gained nearly 100 points, rising 0.23 percent to 37,903.29 points.

The S&P 500 index fell 0.34 percent to 5,018.39 points, and the Nasdaq index declined 0.33 percent to 15,605.48 points.

While the Fed left the policy rate unchanged in line with expectations, a mixed trend was observed in equity markets.

The Bank kept the policy rate steady in the 5.25-5.50 percent range, the highest level in 23 years. In the statement released by the Bank, it was noted that progress toward the 2 percent inflation target had not been achieved in recent months.

Fed Chair Jerome Powell also signaled in his press conference that interest rates might remain high for longer than expected.

Pointing out that the data so far this year has not provided much confidence, Powell said, "As I have stated before, the data on inflation has come in above expectations.

It is likely to take longer than expected to gain such great confidence," he said.

Stating that the policy focus is on how long monetary policy will be kept restrictive, Powell said, "I do not think it is likely that the next policy move will be an interest rate hike."

Following Fed Chair Powell's remarks that an interest rate hike was unlikely, the yield on the 10-year US Treasury bond, which had fallen to 4.58 percent, later stabilized at 4.63 percent.

On the macroeconomic data front, private sector employment in the US increased by 192 thousand in April, coming in above market expectations. According to ADP private employment data, annual wages rose by 5 percent in April.

The average interest rate for a 30-year fixed-rate mortgage in the US rose to 7.29 percent, the highest level in 5 months. Mortgage applications fell by 2.3 percent last week compared to the previous week.

In the country, the Institute for Supply Management's (ISM) manufacturing Purchasing Managers' Index (PMI) came in at 49.2 in April, below market expectations. S&P Global's April manufacturing PMI data was revised upward to 50.

The number of job openings in the US, measured by JOLTS, fell to 8 million 488 thousand in March, recording its lowest level since February 2021.

Construction spending in the country also decreased by 0.2 percent in March, contrary to expectations of an increase.

COMPANIES ANNOUNCED MIXED FINANCIAL RESULTS

On the corporate side, US e-commerce giant Amazon, which announced its balance sheet after the markets closed yesterday, reported that its revenue in the first quarter of the year increased by 13 percent compared to the same period last year, reaching 143.3 billion dollars. The company's shares, whose revenue exceeded expectations, gained more than 2 percent in value.

The revenue of Starbucks, one of the companies facing protest and boycott campaigns due to Israel's attacks on Gaza, decreased in the January-March period. Shares of the coffee chain, which announced financial results below expectations, lost approximately 16 percent of their value.

Shares of chip company AMD fell 9 percent, and shares of Super Micro Computer, whose revenue came in below expectations, fell 14 percent.

Pfizer, which announced its balance sheet today, reported revenue above estimates and also raised its revenue guidance. The pharmaceutical company's shares gained 6 percent in value.

The revenue of Yum! Brands, the US restaurant management company that owns KFC, Pizza Hut, and Taco Bell restaurants, fell 3 percent in the first quarter to 1.6 billion dollars. The company's share price fell more than 4 percent after announcing its balance sheet.

US pharmacy chain CVS Health's shares fell approximately 17 percent following financial results that were below expectations.

New York Community Bank, one of the US regional banks experiencing problems after announcing a surprise loss in the last quarter of last year, reported a loss of 335 million dollars in the first quarter of the year. However, the bank's shares gained more than 28 percent after CEO Joseph Otting said that although this year is a transition year, the path to profitability for the next 2 years is clear.

News Source: AA