Stock market today
S&P 500: 4,680.06,+19.49(+0.42%)
Dow 30: 36,124.23,-33.35(-0.09%)
Russell 2000: 2,402.43,-1.85(-0.08%)
Stock market news
“Stocks traded mixed on Thursday, with tech stocks and the broader market setting new highs as investors digested the Federal Reserve’s decision to begin paring back some of its monetary policy support as the economic recovery progressed.
Although the Dow dropped, tech stocks were boosted by Tesla, which set a new record high above $1200 per share, and helped the Nasdaq set a fresh record. The S&P 500 also eked out a new high.
A day earlier, all of the major benchmarks set records, with the Fed’s latest monetary policy decision compounding with optimism over a slew of stronger-than-expected quarterly corporate earnings results.
The Fed’s decision on Wednesday unfolded the way many investors had been expecting, wherein the central bank formally announced it would begin tapering its pandemic-era asset purchase program starting this month. That came as Federal Open Market Committee members deemed that the economy had made “substantial further progress” in recovering to warrant the gradual removal of this policy support.
But importantly, the newly announced contours of the Fed’s tapering plan appeared to appease equity traders.
“The Fed has baked in some flexibility in their tapering,” Ryan Nauman, Zephyr market strategist, told Yahoo Finance Live on Wednesday. “They were very clear that in November and December how much they were going to taper. After that, they did not put in a dollar amount on it.”
Specifically, the Fed said it would begin reducing its asset purchases this month by a total of $15 billion, and then by another $15 billion in December, but said the outlook for the pace of tapering in the future would depend on “changes in the economic outlook.” Fed Chair Jerome Powell also reiterated his prior stance that the ultimate end of the tapering process next year would not automatically signal the start to interest rate hikes.”
Stock market data: Yahoo Finance