# Stocks rally after Fed hikes rates, crude jumps

> The Federal Reserve raised its benchmark rate by 50 basis points to 0.75%-1%, the largest hike in 22 years, and said it would begin shrinking its balance sheet in June. US stocks rallied and Treasury yields fell as the move was seen as less hawkish than feared, while crude oil jumped, with WTI settling at $107.81 and Brent at $110.14.

- Date: 2022-05-04 · published 2022-05-04T12:00:00.000Z
- Category: macro · region US · magnitude high
- Page: https://feedsoft.ai/events/41309-stocks-rally-after-fed-hikes-rates-crude-jumps
- Commodities: [Crude Oil (WTI)](https://feedsoft.ai/c/WTI.md), [Crude Oil (Brent)](https://feedsoft.ai/c/BRENT.md), [US Dollar (Broad)](https://feedsoft.ai/c/DXY.md)

## Why it matters

Higher US rates strengthen the dollar and raise borrowing costs, which typically pressures dollar-denominated commodities and feed costs, though the rally in crude lifts energy and diesel costs for feed transport and processing.

## Read by commodity

- DXY: bullish ▲
- WTI: bullish ▲
- BRENT: bullish ▲

## Similar past events

| Commodity | Date | Event | 5-day % | 20-day % |
| --- | --- | --- | --- | --- |
| WTI | 2023-12-13 | [Gold climbs over 1% after Fed signals end of rate hikes \| Reuters](https://feedsoft.ai/events/32470-gold-climbs-over-1-after-fed-signals-end-of-rate-hikes-reuters.md) | +7.2% | +5.4% |
| WTI | 2019-07-31 | [Stocks sink after Fed dents hopes for multiple interest-rate cuts - Los Angeles Times](https://feedsoft.ai/events/58018-stocks-sink-after-fed-dents-hopes-for-multiple-interest-rate-cuts-los-angeles.md) | -7.6% | -5.3% |
| WTI | 2024-07-31 | [Stocks rise; yields, dollar lower as Fed signals rate cut](https://feedsoft.ai/events/29141-stocks-rise-yields-dollar-lower-as-fed-signals-rate-cut.md) | -2.1% | +0.6% |
| WTI | 2023-04-03 | [Palm posts biggest jump in two months after crude oil rally - Markets - Business Recorder](https://feedsoft.ai/events/36512-palm-posts-biggest-jump-in-two-months-after-crude-oil-rally-markets-business.md) | +5.4% | -0.0% |
| WTI | 2024-08-23 | [Oil climbs over 2% after Fed's Powell indicates US rate cuts \| Reuters](https://feedsoft.ai/events/28694-oil-climbs-over-2-after-fed-s-powell-indicates-us-rate-cuts-reuters.md) | +4.2% | -1.4% |
| BRENT | 2019-07-31 | [Stocks sink after Fed dents hopes for multiple interest-rate cuts - Los Angeles Times](https://feedsoft.ai/events/58018-stocks-sink-after-fed-dents-hopes-for-multiple-interest-rate-cuts-los-angeles.md) | -7.6% | -7.3% |
| BRENT | 2024-07-31 | [Stocks rise; yields, dollar lower as Fed signals rate cut](https://feedsoft.ai/events/29141-stocks-rise-yields-dollar-lower-as-fed-signals-rate-cut.md) | -3.0% | +2.0% |
| BRENT | 2023-04-03 | [Palm posts biggest jump in two months after crude oil rally - Markets - Business Recorder](https://feedsoft.ai/events/36512-palm-posts-biggest-jump-in-two-months-after-crude-oil-rally-markets-business.md) | +7.4% | +1.0% |

## Sources

- reuters.com: https://www.reuters.com/business/global-markets-wrapup-1-2022-05-04/

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.