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Stocks rise broadly on Wall Street after Fed statement – The Denver Post – Denver, Colorado

Denver, Colorado 2021-09-22 14:33:13 –

By DAMIAN J. TROISE and ALEX VEIGA

Wall Street’s share price rose sharply on Wednesday afternoon after the Federal Reserve board signaled that it might begin easing special support measures for the economy later this year.

The central bank said in a statement released at 2:00 pm in the east that it could start raising benchmark rates by the end of next year, earlier than expected three months ago.

The Federal Reserve Board also said that if the economy continues to improve, it is likely to start slowing the pace of monthly bond purchases “immediately.” I buy bonds to keep long-term interest rates low.

The S & P 500 rose 1.3% at 2:13 EST. In the early stages, it was only up 0.3%. Other major indices also rose following the Fed’s statement. The Dow Jones Industrial Average rose 488 points (1.4%) to 34,405 and the Nasdaq rose 1.3%.

The rise within the S & P 500 is widespread, and if it is maintained, it could break the index’s four-day streak. Over 90% of index stocks have risen. Banks and tech companies led the profits.

Small cap stocks also rose. Russell 2000 increased by 1.6%.

Yields on 10-year government bonds fell from 1.32% just before the Fed’s statement was issued to 1.30%. Crude oil prices rose 2.3%.

Netflix surged 3.7% after streaming entertainment services acquired the work of the late British author Roald Dahl, a well-known children’s book such as “Charlie and the Chocolate Factory.”

Facebook fell 3.8% after telling blog posts that social networks underreported web conversions by Apple mobile device users by about 15% following changes in Apple’s operating system. I suppressed the increase.

FedEx fell 8.3%, the largest decline in S & P 500 shares, after reporting a significant increase in costs despite increased transport demand. Due to the mix of labor and supply chain issues, different industrial and other companies are dealing with higher costs.

Wall Street has sought to measure how a slowdown in economic recovery will affect the Fed’s decision-making process. The broader market is volatile as the question prolongs as the number of cases of COVID-19 increases due to the highly contagious delta mutant.

Investors are also concerned about Chinese real estate developers with large debts and the damage they could suffer if they default and have a spillover effect on the market. Evergrande, one of China’s largest private sector conglomerates, said it plans to make payments on Thursday, which could alleviate some of these concerns.

Most European markets were high and Asian markets were mixed. The Korean and Hong Kong markets have been closed due to holidays.

Stocks rise broadly on Wall Street after Fed statement – The Denver Post Source link Stocks rise broadly on Wall Street after Fed statement – The Denver Post

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