Capital Markets

The Bernanke Effect: Rate Up, Dow Down

The latest bump-up in the federal funds rate sends 29 of 30 companies for a tumble.
Stephen TaubMarch 28, 2006

With one exception, the share price of the 30 companies that make up the Dow Jones Industrial Average closed down on Tuesday following the latest rate hike by the Fed, reported MarketWatch. Only Home Depot, unchanged at the close of trading, was able to hold its ground.

Earlier in the day, the Federal Open Market Committee raised the federal funds rate by 25 basis points, to 4.75 percent. This was the 15th consecutive increase by the FOMC dating back to June 2004, but the first since Federal Reserve Board Chairman Ben Bernanke took the reins from Alan Greenspan.

In aggregate, the DJIA closed down 95.57 points, MarketWatch added.