S&P 500 hits record after Powell interest rate hike postponed | Financial

Federal Reserve Chairman Jerome Powell said central banks could begin phasing out $120 billion in bond purchases later this year. He did not mention concrete steps. The economy is strong enough for those steps, he says. He expects an interest rate hike later, sometime next year.

The Dow-Jones index closed 0.7% higher, 242 points, the broad S&P rose 0.9% and tech gauge Nasdaq made 1.2% gains. The Russell 2000 for medium-sized companies is 1.1% higher.

Gold gains 1.4%, silver rises 2.2%, interest rates on government debt are falling. The euro gained 0.4% at $1.1793.

After the speech, the VIX or volatility index fell 3% to 16 index points.

Increase prices

At the same time, it was revealed that a key indicator of US consumer prices had risen 4.2 percent in July from a year earlier. That is the strongest increase in 30 years, which may support critics of the Fed policy in their view that the influx of cheap money must soon be over.

The WTI oil price is up 1%. Oil funds are benefiting due to temporarily lower inventories and the approaching Hurricane Ida in the Gulf of Mexico oil extraction area.

Among these funds, Occidental Petroleum was up 7%, Cimarex Energie is up 7% and Cabot Oil is up 6.3%, Marathon Oil is up 4.3%. Chevron is up 1.5%.

Peloton, which sells fitness equipment for home workouts, fell 8.5 percent. The company has received subpoenas from law enforcement in the United States to provide information and documents about accidents involving certain of the company’s treadmills. A child was killed in one of those accidents. Tens of thousands of copies have already been recalled.

Meal delivery company DoorDash lost 1.6 percent, after industry peer Just Eat Takeaway in Amsterdam had plunged. New York wants to set an upper limit on the commissions that meal deliverers charge to restaurateurs.

Also listen to the podcast Kwestie van Centen with Martin Visser about the new nervousness at the stock exchange:

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