On Thursday, Wall St. had winded down the day in an ambivalent tenure as benchmark Standard & Poor 500 extended its record-setting rally and the trade-sensitive Dow gained after market participants had stomached US Fed’s new strategy to foster an average inflation target and to pare all of the pandemic-led laid-offs that the US have been grappling with.
Apart from an alteration in Federal Reserve’s inflation stance, a promising development in COVID situation had also ballooned up investors’ optimisms, while the Fed’s new inflation strategy had also lifted up the Treasury Yields which in effect had given a boost to the interest-rate sensitive financial stocks.
S&P, Dow gain as financials advance on new Fed stance
In point of fact, as the US Fed’s new stance on inflation had proffered the largest boost to Dow and S&P 500 on Thursday’s market, eventually pushing the latter to its fifth straight session of record closing highs and the former in a breathing distance of regaining an affirmative territory year-to-date thus far, the tech-sensitive Nasdaq ended the day slightly lower to its all-time closing highs as some of the tech investors appeared to have swapped their stances with two other key US indices followed by a revamp in Fed’s inflation policy stance.
Citing statistics, on Thursday’s market wrap-up, the trade-sensitive Dow ended up the day just 3.6 per cent shy of its all-time high reached on February and added 0.57 per cent to wrap up the day at 28,492.27, while S&P 500 rose by 0.17 per cent to 3,484.55 and Nasdaq was jolted 0.34 per cent lower to 11,625.34.
Meanwhile, addressing to Federal Reserve’s new inflation stance, a managing partner at Keator Group in Lenox, Massachusetts, Mathew Keator said on Thursday, “The statement by Powell in some regards is telegraphing a continued dovish stance for quite some time…The steepening of the yield curve is a welcome addition, particularly on a day where the market is rising.
There seems to be a bit of rotation with regards to the news today and how the market has responded, giving the markets a value bump. ”