On Wall Street, stocks drifted to a mixed close on Thursday as central banks continue to raise interest rates to combat inflation.
Despite the fact that the bulk of equities decreased, the S&P 500 increased 16.20, or 0.4%, to 4,381.89 in value.
Central Banks Increased Borrowing Costs
The benchmark index remained stable thanks to a recovery in the price of technology equities, which also served to mask market losses elsewhere.
The Nasdaq composite increased by 128.41 points, or 1%, to 13,630.61, setting a market-leading high, thanks to the gains for high-growth stocks.
To 33,946.71, the Dow Jones Industrial Average dropped 4.81 points, or less than 0.1%.
The Bank of England increased its benchmark interest rate by more than anticipated, reaching a 15-year high.
The borrowing costs were increased by the central banks of Turkey, Switzerland, and Norway.
Meanwhile, Jerome Powell, the head of the Federal Reserve, repeated his view that inflation is still too high and that additional rate rises may be required.
After aggressively increasing rates throughout 2022 and 2023 to contain excruciatingly high inflation, the Fed maintained interest rates unchanged at its most recent meeting.
Since the summer of last year, inflation has slightly abated, but the Fed has said it may raise rates twice more this year in an effort to bring inflation down to its stated target of 2%.
Read more: Wall Street Stock Pickers Place Bets On Recession Amid Economic Uncertainty
Addressing Inflation, Growth, And Risks
A day after testifying before a House of Representatives committee, Powell appeared before a Senate committee on Thursday.
To make borrowing more challenging and to suppress inflation, central banks around the world have started boosting interest rates.
The plan runs the danger of pushing growth too far and pushing economies into a downturn.
Despite warnings from economists and analysts that the US could enter a recession before 2023 is over, the economy has been supported by steady consumer spending and a robust job market.
Read more: Bank Of America’s $500 Million Equity Push: Empowering Minority- And Women-Led Funds