Financial markets in the US are adjusting to the new reality of higher interest rates from the US Federal Reserve and so far they are adjusting well. Stocks also benefited from a slight easing of concerns about interest payments on Russian government debt.
Stocks on Wall Street experienced another day of growth. All three major indexes of the New York Stock Exchange were up on Thursday, with the Dow Jones and the S&P 500 gaining 1.23 percent. The tech-heavy Nasdaq rose an even tenth of a percentage point faster. Wall Street’s major indices have experienced their biggest gain in three consecutive trading sessions since November 2020.
US equities have benefited from a slight easing of concerns about Russia’s ability to pay interest on its government debt. It was unclear whether Russia would be able to pay them, as its central bank has frozen dollar assets abroad. Russia has issued an order to pay interest on the debt, thus showing its willingness to meet its obligations.
Investors also began to adjust to the new reality after the Federal Reserve raised its benchmark interest rate. Markets welcomed the US central bank’s preference for small steps on the path to higher rates.