Global Markets respond in a positive way after the US Fed Chair Powell's Speech on reducing inflation to 2% possibly this year.
The recent statements made by the US Fed Chair received a positive response from the financial markets on later Tuesday, as seen by the 1.2% increase in the S&P 500 Index. Also, the crypto market witnessed a 0.8% overall gain with the market cap hitting the $1.09 trillion mark. However, the gains vanished from the markets as soon as the speech finished.
The Federal Reserve’s recent decision to hike its interest rate by only 25 basis points has already made the markets to expect lower hikes in future meetings which showed an increase of 517,000 jobs recently. The Chair stated that there was a low probability that the news would have resulted in a change. Responding to the news, VIX got down straight to 17.06, the lowest volatility level of the year by far.
Since then, the VIX has jumped by a few marks and currently stands at 18.73. The next volatility can be observed on Feb 14th, when the CPI data of Jan 2023 will be released. At the time of writing this article, S&P 500 stands at the 4,150.40 mark while Nasdaq Composite stands at the 12,033.08 mark respectively.
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