The week 25.07.-29.07.2022

Following the Fed’s rate hike, the main US market indices rebounded Wednesday afternoon, with gains of 1% to 2%. US GDP declined by -0.9% in the second quarter of 2022, below the consensus estimate of a +0.8% reading. The decline was followed by a contraction of -1.6% in Q1 2022, fuelling worries of a recession.
The United States Federal Reserve raised interest rates by 0.75 percentage points on Wednesday, bringing the benchmark rate to a range of 2.25% to 2.50%. The Fed has raised interest rates by 0.75 percentage points for the second time in a row. Powell stated that by the end of the year, the fed funds rate will be in the range of 3.0% to 3.5%, indicating another 50-100 basis point tightening over the next three sessions this year, slowing the pace of rate hikes.
The S&P 500 ended the week up 4.15%. One-Signal Xpert returned 3.02% and Xpress -1.45%. Year-to-date, the index is still down at -13.56%, compared to the One-Signa. Xpert with 33.35% and Xpress with 28.31%.