4 Nov 2021
Stocks Close at Record Highs After Fed Announces Scale Back of Bonds
The Index Today
U.S stock indices peaked at record highs after Fed Reserve announced plans to scale back bond-buying stimulus program. After Jerome Powell’s meeting, the S&P peaked, the broad market gauge increased 0.6%, Dow Jones Industrial Average went up 0.3% whereas NASDAQ gained 1%.
After the two-day meeting, the Fed Reserve decided to end the bond buying program without changing rates. Investors were hopeful that the Fed will go back on the program and instead focused on what the outlook for interest rate would be in the near future.
Mr. Powell laid much emphasis on inflation and the overall uncertainty of the economy, stating that inflation is still transitory. The NASDAQ has been able to boost the sector due to low interest rate in prior sessions. Investors are still hopeful that stocks will continue to grow well into the next year. Hugh Gimber, strategist at J.P Morgan Asset Management said, “Earning season has been very strong and the beats have been extremely robust. Despite the fact that there have been lots of concerns about price pressures and supply bottlenecks, there is no sign that any of that is going through into margins.”
Brent crude fell by 3.2% in the commodities markets. In other regions, the Stoxx Europe went up 600 and managed to close at a new record. The Hang Seng Index went down 0.3% whereas the Shanghai Composite dropped 0.2%.