“The DJIA rallied after the Fed gave clearer guidance on when tapering will begin” — Paul Ebeling
Wednesday, the 3 benchmark US stock indexes rose 1% as investors took in stride the latest signals from the Fed, including clearing the way for the Fed to reduce its monthly bond purchases ‘sometime’ soon.
The policy-setting FOMC held interest rates at near-Zero in its updated statement.
The S&P 500 registered its biggest daily percentage gain since 23 July 2021.
In its statement, the Fed suggested interest rate increases may follow more and said overall indicators in the economy “have continued to strengthen.”
The FOMC has o2more meetings this yr, 1 in early November and 1 in mid-December.
Bank shares rose following the Fed news, with the S&P banks index ending up 2.1% on the day, and S&P 500 financials up 1.6% and among the biggest gainers among sectors.
Some strategists viewed the Fed’s comments Bullish to Very Bullish
The DJIA rose 338.48 pts, or 1%, at 34,258.32, the S&P 500 gained 41.45 pts, or 0.95%, at 4,395.64 and the NAS Comp added 150.45 pts, or 1.02%, at 14,896.85.
Apple (NASDAQ:AAPL)and other big technology-related names gave the S&P 500 its biggest boost.
Advancers outnumbered decliners on the NYSE by a 3.88-to-1 ratio; on the NAS, a 2.38-to-1 ratio favored advancers.
The S&P 500 posted 9 new 52-wk highs and 8 new lows; the NAS Comp recorded 52 new highs and 66 new lows.
Volume on US exchanges was 9.91-B/shares, compared with the 9.99-B average for the full session over the last 20 trading days.
Have a prosperous day, Keep the Faith!