Shares of the Invesco QQQ Trust, which tracks the technology-heavy Nasdaq-100 index, were trading near unchanged Wednesday afternoon after the Federal Reserve announced an interest rate hike that was in line with expectations.
The Invesco QQQ Trust
QQQ,
was roughly flat, flipping between small gains and losses, while the SPDR S&P 500 ETF Trust
SPY,
fell 0.5%, according to FactSet data, at last check. The Invesco QQQ Trust has soared around 17 % so far this year, far outpacing the S&P 500 ETF Trust’s gain of about 4% based on Wednesday afternoon trading.
The Federal Reserve announced Wednesday that it raised its benchmark interest rate by a quarter percentage point, as expected, to a target range of 4.75% to 5% as it continues fighting high inflation after taking recent steps to shore up confidence in the U.S. banking sector. The Fed’s “dot-plot” forecast showed just one more rate hike this year, with no rate cuts projected.
Read: Fed hikes interest rates again, pencils in only one more increase
“The U.S. banking system is sound and resilient,” the Fed said in its statement released Wednesday afternoon. “The Committee remains highly attentive to inflation risks.”
Meanwhile, Treasury yields were falling.
The yield on the 10-year Treasury note
TMUBMUSD10Y,
was down 12 basis points at around 3.48% while two-year Treasury yields
TMUBMUSD02Y,
dropped 20 basis points to around 3.98%, according to FactSet data, at last check.
