February 1: Market Summary

Fed announces decision

Good evening.

Market rally continues, Fed hikes interest rates by 0.25%, and Mark Zuckerberg says 2023 is the "year of efficiency."

Let's dive in.

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Markets

Here are today's market moves:

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What Happened?

• U.S. stocks rallied on Wednesday after the Federal Reserve announced its policy decision.

• The Fed raised interest rates by 25 basis points and signaled further rate increases ahead:

  

• Why did markets rally? The Fed’s quarter-point hike was in line with expectations. Investors are confident that the Fed will continue to ease, or even pause, its rate hikes.

• The crypto market climbed on Wednesday, with Bitcoin approaching $24,000, as crypto prices moved higher with other risk assets

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Catch Up

1. Meta shares climbed 20% after beating Q4 revenue estimates. Mark Zuckerberg said 2023 is the "year of efficiency."

2. Fed Chair Jerome Powell says he doesn’t expect the Fed to cut rates in 2023.

3. PayPal plans to lay off 2,000 employees, or 7% of its workforce.

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What Else?

Douglas A. Boneparth @dougboneparth

Growing up, I thought I'd change the world. Now, I sit at a desk waiting to see how much the Fed will raise interest rates.

Miles @mileszim

Midjourney is getting crazy powerful—none of these are real photos, and none of the people in them exist.

Dan Toomey @dhtoomey

I spent the past few days talking to 10 billionaires. I asked them what's the most important rule for making your first $100m. All of their answers had one thing in common:

Compounding Quality @QCompounding

120 years of stock market history in one chart: