US stocks rise after Fed's half-point rate hike; MRNA, SBUX, LTHM rally

May 04, 2022 01:50 PM PDT | By Rupam Roy
Follow us on Google News:

Wall Street indices climbed higher on Wednesday, May 4, following the Federal Reserve's announcement of its widely anticipated half-point interest rate hike, marking the highest rate increase since 2000.

The S&P 500 was up 2.99% to 4,300.17. The Dow Jones rose 2.81% to 34,061.06. The NASDAQ Composite increased by 3.19% to 12,964.86, and the small-cap Russell 2000 was up 2.69% to 1,949.92.

The Federal Reserve concluded its two-day meeting with the announcement of raising interest rates by half a percentage point on Wednesday while adding that the central bank would start winding back its US$9 trillion asset portfolio from next month.

The market witnessed choppy trading so far this year, on concerns over Fed's hawkish stance to tackle inflation, the Russia-Ukraine war, and other macroeconomic factors. The growth stocks were worst-hit as investors kept their distance from risk-bet assets in anticipation of higher interest rates. In addition, the mixed earnings from the big companies also raised concerns of the market participants.

Meanwhile, the US trade deficit hit a record high in March, affirming that trade weighed on the economy in the first quarter. The US trade deficit rose 22.3% to US$109.8 billion in March amid a record surge in imports, the Commerce Department reported on Wednesday.

Energy, communication services, and information technology were the top movers in the S&P 500 index on Wednesday. All the 11 sectors of the index stayed in the positive territory.

The coffee chain, Starbucks Corporation (SBUX) gained 10.09% in the intraday session, a day after the company reported strong revenue in the first quarter that topped Wall Street estimates.

Shares of the biotechnology company, Moderna, Inc. (MRNA) increased by 5.15% in intraday trading, after the company reported robust first-quarter earnings results. In addition, the company guided higher Covid-19 vaccine sales in the second half of 2022 as compared to the first half.

Livent Corporation (LTHM) added 27.37% after the company posted a better-than-anticipated quarterly profit while providing strong guidance for fiscal 2022 revenue due to higher demand for lithium in the EV batteries.

Advanced Micro Devices, Inc. (AMD) soared 7.13% after the company provided upbeat guidance for full-year and second-quarter revenue.

In the energy sector, Exxon Mobil Corporation (XOM) increased by 3.99%, Chevron Corporation (CVX) rose 3.18%, and Shell plc (SHEL) surged 2.34%. TotalEnergies SE (TTE) and ConocoPhillips (COP) advanced 2.38% and 5.04%, respectively.

In technology stocks, Apple Inc. (AAPL) gained 4.01%, Microsoft Corporation (MSFT) soared 2.89%, and NVIDIA Corporation (NVDA) added 3.44%. Broadcom Inc. (AVGO) and ASML Holding N.V. (ASML) ticked up 3.81% and 3.74%, respectively.

In the communication services sector, Alphabet Inc. (GOOGL) surged 4.08%, Meta Platforms, Inc. (FB) jumped 5.33%, and Netflix, Inc. (NFLX) grew 2.00%.

In consumer discretionary stocks,, Inc. (AMZN) added 1.32%, and Tesla Inc. (TSLA) increased by 4.74%.

In the crypto space, Bitcoin (BTC) and Ethereum (ETH) increased by 5.53% and 6.33%, respectively. The global crypto market cap rose 5.84% to US$1.80 trillion at 4:00 pm ET on May 4.

Also Read: PLD to SPG: Can these 5 REIT stocks provide hedge against inflation?

Top movers and losers in the US stock market on May 4

Also Read: Is Petoverse (PETO) crypto the new big name in the metaverse industry?

Top volume movers in the US stock market on May 4

Also Read: MSFT to GME: Five top gaming stocks to explore in Q2

Futures & Commodities

Gold futures were up 0.58% to US$1,881.46 per ounce. Silver increased by 1.66% to US$23.042 per ounce, while copper rose 1.93% to US$4.3655.

Brent oil futures increased by 4.75% to US$109.96 per barrel and WTI crude was up 5.00% to US$107.53.

Also Read: Five Chinese internet tech companies to watch: BABA, JD to WB

Bond Market

The 30-year Treasury bond yields were up 1.13% to 3.040, while the 10-year bond yields fell 0.34% to 2.948.

US Dollar Futures Index decreased by 0.93% to US$102.530.


The content, including but not limited to any articles, news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations and video (Content) is a service of Kalkine Media LLC (Kalkine Media, we or us) and is available for personal and non-commercial use only. The principal purpose of the Content is to educate and inform. The Content does not contain or imply any recommendation or opinion intended to influence your financial decisions and must not be relied upon by you as such. Some of the Content on this website may be sponsored/non-sponsored, as applicable, but is NOT a solicitation or recommendation to buy, sell or hold the stocks of the company(s) or engage in any investment activity under discussion. Kalkine Media is neither licensed nor qualified to provide investment advice through this platform. Users should make their own enquiries about any investments and Kalkine Media strongly suggests the users to seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice), as necessary. Kalkine Media hereby disclaims any and all the liabilities to any user for any direct, indirect, implied, punitive, special, incidental or other consequential damages arising from any use of the Content on this website, which is provided without warranties. The views expressed in the Content by the guests, if any, are their own and do not necessarily represent the views or opinions of Kalkine Media. Some of the images/music that may be used on this website are copyright to their respective owner(s). Kalkine Media does not claim ownership of any of the pictures/music displayed/used on this website unless stated otherwise. The images/music that may be used on this website are taken from various sources on the internet, including paid subscriptions or are believed to be in public domain. We have used reasonable efforts to accredit the source (public domain/CC0 status) to where it was found and indicated it, as necessary.

Top Listed Companies