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Photo: Michael Nagle / Bloomberg – |
US indexes rose to new records on Wednesday after the Federal Reserve announced a long-awaited decision to delay monthly asset purchases, which the central bank accelerated during the pandemic, writes CNBC.
Major indexes turned green after the central bank indicated that the process of delaying purchases would begin later this month. The Fed also said it was in no hurry to raise interest rates.
The blue chip index Dow Jones Industrial Average rose 104.95 points to 36,157.58 points after sinking more than 160 points earlier in the session. He ended the day with a new record.
The broad index S&P 500 rose 0.65% to 4660.57 points, a new historical record. The technological Nasdaq Composite added 1% to 15,811.58 points, also ending the day with a record.
This is the fourth consecutive session in which all three indices reached records.
Russell 200 increased by 1.8% to 2404.28, again a record. The benchmark recorded a 4.7% increase since the beginning of the week.
The Fed said it would start slowing its asset purchases “later this month” by cutting them by $ 15 billion a month. The central bank added that it is ready to make pace adjustments if necessary, given the economic outlook.
Meanwhile, the day was marked by the release of a number of important corporate reports. The share price of Lift increased by 8.2% due to strong quarterly results of the company, and at CVS Health the growth turned out to be 5.7%, after the company reported higher indicators than expected.
But the value of the securities of Zillow fell 24.8% after it announced it would close part of its business.
The shares of Bed Bath & Beyond rose in price thanks to the news of the company’s partnership with Kroger.
The share price of Activision Blizzard sank by about 14.1%. The reason for this was that the company announced the premieres of two of its games will be postponed. The company also gave a weaker forecast for the last quarter of the year, although it managed to exceed the profit forecasts for the last quarter.
Good financial statements helped set new market records. Of the S&P 500 companies that have announced their reports so far, 80.9% have exceeded the consensus forecasts according to FactSet. This is despite supply chain problems, labor challenges, commodity inflation, central bank policies and Covid-19 risks.
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