Always remember that investments can go down as well as up in value, so you could get back less than you put in. A rule of thumb is to hang on to your investments for at least five years to give them the best chance of providing the returns you are hoping for.
US stocks took a nosedive yesterday after the Fed raised interest rates by 0.75% to a target range of 3% - 3.25%.
The day did start off quite nicely for US stocks, with all major indices and individual S&P 500 sectors performing well. However, that changed immediately after the Fed announced its decision.
Fed policymakers now see interest rates reaching 4.4% at the end of this year, so we can expect more rate hikes in the coming months.
Spot the FTSE 100 below doing a happy dance. That has already changed this morning in anticipation of the Bank of England's decision on interest rates.
Here are yesterday’s closing prices:
All 11 S&P 500 sectors closed red yesterday, with Communication Services (XLC) and Consumer Discretionary (XLY) taking the biggest hits at -2.45% and -2.37%, respectively.
Bitcoin is slightly above yesterday’s $18,800, while Ethereum is down 4% to about $1,250.
European stocks are down this morning. The UK’s FTSE 100 is down about 0.15%, the European STOXX 600 index is down about 0.65%, and Germany’s DAX is down about 0.50%.
The pound fell below $1.13 this morning as traders anticipate the Bank of England’s announcement on interest rates scheduled for later today.
This morning, Norway’s central bank raised interest rates by 0.50%, and Switzerland’s national bank increased rates by 0.75%, all in a bid to combat inflation. The FT has more.
Wood prices increased in August in Germany as households turned to wood as an alternative heating source to gas and electricity. More on the FT.
Investors are bracing for another potential interest rate cut in Turkey, despite its inflation surpassing 80%. CNBC has more.
Germany has agreed to nationalise its biggest gas importer, Uniper, to avert a crisis as it battles energy shortages resulting from Russia’s war in Ukraine. More on The Guardian.
A New York judge has ordered Tether to produce financial records relating to the backing of USDT as part of a lawsuit that alleges Tether conspired to issue the stablecoin as part of a campaign to inflate the price of Bitcoin (BTC). CoinDesk has more.
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