The U.S. Federal Reserve raised its benchmark interest rate and signaled potential further rate hikes ahead. Consequently, growing concerns over a prolonged high-interest-rate environment significantly dampened investor sentiment on Wall Street.
U.S. Federal Reserve raises benchmark interest rate by 25 bps at September FOMC meeting and signals possible additional hikes within the year
U.S. Treasury yields surge and U.S. dollar strengthens following Fed Chair Warsh's hawkish remarks and upward revision of the dot plot
Three major U.S. stock indices close lower due to risk-off sentiment driven by concerns over further monetary tightening
International crude oil prices decline as oil supply disruption concerns ease on expectations that the Saudi pipeline shutdown will be resolved
With the market having already priced in the adverse impact of the US Fed's hawkish rate hike, investor sentiment stabilized as bargain hunting flowed in following the confirmation of solid corporate earnings momentum.
The US Federal Reserve (Fed) executed a 0.25%p hike in the FOMC benchmark interest rate (3.75-4.00%) and confirmed a hawkish stance hinting at the possibility of further tightening within the year.
Bank and insurance stock prices rose as expectations of improved loan-to-deposit margins and asset yields were reflected due to the US benchmark rate hike.
In the aftermath of the US Fed rate hike, interest rates rose mainly centered on short-term instruments in the Seoul bond market, with the 3-year Treasury yield rising to 4.07%.
Due to the impact of the US Fed's monetary tightening, the US Dollar Index topped 100, weakening the Korean won and expanding financial market volatility.
