Wall St ends higher as Fed signals bond-buying taper soon

Stock Markets15 minutes ago (Sep 22, 2021 04:58PM ET)

2/2
(C) Reuters. FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly/File Photo

2/2

By Caroline Valetkevitch

NEW YORK (Reuters) – The three major U.S. stock indexes rose 1% on Wednesday as investors mostly took in stride the latest signals from the Federal Reserve, including clearing the way for the central bank to reduce its monthly bond purchases soon.

The S&P 500 registered its biggest daily percentage gain since July 23.

While trading was choppy following the Fed’s latest policy statement and comments by Fed Chair Jerome Powell, stocks finished close to where they were before the central bank news.

In its statement, the central bank also suggested interest rate increases may follow more quickly than expected and said overall indicators in the economy “have continued to strengthen.”

Stocks began the day higher as concerns eased over a default by China’s Evergrande. Evergrande’s main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond.

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 as mixed.

“So they said we’re going to probably start to taper, but they haven’t said when and haven’t said how much, so we’re kind of back where we were a day ago,” said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

“Those remain open questions,” he said. “Also, financial conditions remain very easy, and that’s part of the reason why markets aren’t going crazy at this point.”

The Dow Jones Industrial Average rose 338.48 points, or 1%, to 34,258.32, the S&P 500 gained 41.45 points, or 0.95%, to 4,395.64 and the Nasdaq Composite added 150.45 points, or 1.02%, to 14,896.85.

Apple (NASDAQ:AAPL) and other big technology-related names gave the S&P 500 its biggest boost.

On the downside, FedEx Corp (NYSE:FDX) tumbled 9.1% after posting a lower quarterly profit and as the delivery firm cut its full-year earnings forecast.

Advancing issues outnumbered declining ones on the NYSE by a 3.88-to-1 ratio; on Nasdaq, a 2.38-to-1 ratio favored advancers.

The S&P 500 posted nine new 52-week highs and eight new lows; the Nasdaq Composite recorded 52 new highs and 66 new lows.

Volume on U.S. exchanges was 9.91 billion shares, compared with the 9.99 billion average for the full session over the last 20 trading days.

Wall St ends higher as Fed signals bond-buying taper soon

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

More from author

Subscribe

Related posts

Latest posts

U.S. surgeons successfully test pig kidney transplant in human patient

Stock Markets9 minutes ago (Oct 19, 2021 07:11PM ET) (C) Reuters. By Nancy Lapid NEW YORK (Reuters) - For the first time, a pig kidney...

Haiti gang seeks $1 million per person for kidnapped missionaries

World29 minutes ago (Oct 19, 2021 06:50PM ET) (C) Reuters. An entrance to the Christian Aid Ministries compound is seen after the abduction of a...

U.S. House committee nears contempt vote on Trump aide Bannon

World18 minutes ago (Oct 19, 2021 07:01PM ET) (C) Reuters. FILE PHOTO: Former White House Chief Strategist Steve Bannon exits the Manhattan Federal Court, following...

Categories

Want to stay up to date with the latest news?

We would love to hear from you! Please fill in your details and we will stay in touch. It's that simple!