Why the Fed’s latest rate hike sent stocks to the moon: Morning Brief

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Thursday, July 28, 2022

Today’s newsletter is by Myles Udland, senior markets editor at Yahoo Finance. Follow him on Twitter @MylesUdland and on LinkedIn.

Stocks moved in one direction on Wednesday — higher.

When the closing bell rang, the Nasdaq was up over 4%, the S&P 500 had risen 2.6%, and the Dow was up 1.4%. This marked the Nasdaq’s biggest rally since November 2020.

Including Wednesday’s surge, the S&P 500 has gained more than 1% after each of the Fed’s last four meetings, all of which have included interest rate hikes from the central bank.

And since hitting its most recent low on June 16, the S&P 500 is now up 10%.

What ultimately moved markets on Wednesday was, as always,

Here’s what advisors are telling their clients as recession fears grow

JGI/Jamie Grill | Tetra images | Getty Images

As the US economy shrinks for a second straight quarter — one definition of a recession — many Americans aren’t prepared for an economic downturn.

However, financial advisors say there’s plenty that is in your control.

Fewer than half of Americans feel “financially secure enough” for another recession, according to a survey from digital wealth manager Personal Capital.

Among those surveyed, the top fears include the inability to plan for the future, trouble paying bills or losing a job, the report found, polling roughly 1,000 cross-generation Americans in May 2022.

More from Personal Finance:
How investor portfolios are shifting as the Fed hikes rates
Gaps in access to paid leave lead to financial hardships
What the Fed’s interest rate hikes mean for you

However, the average emergency savings is roughly $7,600, according to the survey, which may be lower than needed. While

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