Retailers and other consumer companies surged after the Federal Reserve’s policy statement and press conference.
The Fed raised its benchmark rate by 75 basis points and said it could do so again, depending on incoming data.
Chairman Jerome Powell said it may be necessary to slow economic growth in order to conquer inflation. He also said the economy does not appear to be in a recession, citing the strength of economic data.
“We’re starting to see the impact of earlier rate hikes and it’s going to come down to consumer confidence and consumer spending which we’ll get some really good data about before the next meeting,” said Oliver Pursche, senior vice president at financial advisory Wealthspire.
There was more evidence of resurgent demand for travel services. Hilton Worldwide Holdings saw its biggest gain since 2020 after the hotel operator blew past estimates – including its own – for the second quarter and forecast continued recovery in travel for the balance of the year.
Airlines continue to struggle with demand, however. Deutsche Lufthansa canceled almost all of its flights from two of its hub airports, Frankfurt and Munich, as ground staff staged a walkout, exacerbating disruption that has plagued the aviation industry as it tries to increase flying to meet surging travel demand.
Kraft Heinz said it plans to offer more deals and discounts in coming months as consumers seek savings in the face of high prices and an uncertain economy.
Write to Rob Curran at firstname.lastname@example.org
(END) Dow Jones Newswires
July 27, 2022 17:15 ET (21:15 GMT)
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