Federal Reserve interest rate hike boosts Wall Street and German markets

US markets responded positively to the Federal Reserve's first interest rate hike since 2023. The decision, which was unanimous, aimed to combat inflation and reinforced the central bank's credibility and independence. Following the announcement, Wall Street saw a resurgence in buying sentiment, particularly within technology stocks. The Dow Jones Industrial Average closed up 0.6 percent, the S&P 500 rose 1.1 percent, and the Nasdaq gained 1.7 percent.

In Germany, the X-Dax signaled a 0.4 percent increase ahead of trading, suggesting investors would also move toward German equities. However, individual corporate news provided mixed signals; Bilfinger issued a profit warning and lowered its annual forecast due to prolonged conflict in the Middle East, causing its shares to drop 8 percent. Conversely, Wacker Chemie saw a slight increase in share price despite revising its long-term revenue and margin targets downward.