Week of 06/12-06/16 Interest Rates left unchanged by the Federal Reserve

The market continued to rise this week as investors finally received news from the Federal Reserve on a much anticipated pause on interest rate hikes. Even though the market closed lower on the daily on Friday, it is up significantly for the year with the S&P 500 index at the 4400 price level. The Nasdaq and the Dow Jones Industrial Average closed higher for eight weeks and 3 weeks in a row respectively. The Federal Reserve did signal during their press conference that two more interest raises are expected before the end of the year. Many investors and economists from Wall Street as well as from top firms think that this is a conservative view from the FED and that the interest rate hikes are done.

The market focus on artificial intelligence (AI) remains strong as many technology stocks continue to surge. The recent bullish wave has been led by NVDA which continues to push higher even after earnings with a all time high stock price of 437 dollars on Friday. Adobe (ADBE) better than expected earnings were a highlight of the week as their cloud software demand rises.

With the multiple positive news this week, it seems like a bull rally is about to begin. Not everyone is convinced about this as inflation may have cooled off a bit, but still remains high. There are many economic issues still lingering in the economy and the question is if that will be enough to bring the market down again.