Oil Falls, Stocks Rise: Markets Bet on Inflation Cooling
📡 Bloomberg Markets · 1 min read ·
Part of composite article Oil and Bond Yields Crush Stocks as Dow Drops 600 Points After Fed Rate Hike View full article →
US stocks and government bonds rose on Wednesday as oil prices dropped. The move raised hopes that inflation can be kept under control.
The gains came after the Federal Reserve raised interest rates. The central bank also signaled that more rate increases are coming.
Lower oil prices can help slow inflation. That is because energy costs affect the price of many goods and services.
Investors welcomed the drop in oil. They sent stock prices higher and bought US Treasuries, which are government bonds.