The market ended higher on Wednesday as investors cheered the Federal Reserve’s decision to keep interest rates near zero and stocks of Big Tech stocks rallied.
The Dow Jones Industrial Average was up 0.6%, over 150 points, on Wednesday, although the S&P 500 rose 1.3% and the tech-heavy Nasdaq Composite gained 1.4%.
The Federal Reserve, which concluded its own temporary policy meeting on Wednesday, kept interest rates unchanged at close zero to continue to encourage the market through the coronavirus pandemic.
The CEOs of both Amazon, Apple, Facebook and Google-parent Officials stated before the House Antitrust Subcommittee, that gave investors a insight to the way Substantial Tech firms are managing challenges from regulators.
Shares of four firms climbed more than 1% after the hearings, although they’re one of the best-performing stocks so far this season, there are rising concerns on Wall Street that hefty market concentration in Substantial Tech giants might pose downside risks.
The busiest week of the next quarter earnings year lasted, with stocks of General Electric, Advanced Micro Devices, General Motors and Shopify all climbing following the firms reported better-than-expected outcomes.
Boeing and Starbucks, meanwhile, published wider-than-expected losses , but equally stocks traded higher going to the marketplace open.
“The pace of the recovery may have slowed in recent months as virus cases have surged across the country and the Fed appears to be in no hurry to change the status quo,” states Charlie Ripley, senior investment strategist for Allianz Investment Management. “Ultimately, the Fed does not intend to upset the applecart until some certainty and clarity can be instilled in the economic outlook as progress is made towards price stability and full employment.”
Things to watch for
Investors also continued to check the most recent coronavirus relief bill issued by Senate Republicans late on Monday, branded the Heath, Economic Assistance, Liability Protection and Schools (HEALS) Act. The GOP proposal to another round of national coronavirus aid involves another round of $1,200 stimulation checks and much more funds for small company loans from the Paycheck Protection Program. The bill would also remove the $600-per-week national unemployment nutritional supplement, which expires this week, to be substituted using a 70% wage-replacement program. State labor departments are scrambling to determine how their systems will manage the obligations, nevertheless: Kentucky states it’s going to require 45 times to construct a schedule and another 3 weeks to examine it and then eventually start making payments.
The Federal Reserve wrapped up its own two-day policy meeting on Wednesday, stating that U.S. economic activity and employment “have picked up somewhat in recent months but remain well below their levels at the beginning of the year.” The previous time Fed officials met in June, they made a decision to keep the target scope for its federal funds rate at 0% to 0.25%. On Tuesday, the central bank announced that it would extend loan programs through the end of 2020 as it continues to support the U. )S. market amid the pandemic.
Here’s Your Unemployment Benefits Can Be Delayed For Hours (Forbes)
Dow Falls 200 Points Following Senate Republicans Unveil Coronavirus Relief Bill (Forbes)
Dow Falls Nearly 200 Points Following China Retaliates By minding Shutdown Of Chengdu Consulate (Forbes)
Apple, Microsoft, Amazon, Google And Facebook Make A Record Chunk Of The S&P 500. Here’s Why That May Be Dangerous (Forbes)
We Looked At The Way The Stock Economy Performed Under Each U.S. President Since Truman — And The consequences Can Surprise You (Forbes)
Complete coverage and live upgrades on the Coronavirus