Wall Street scales to yet more record highs after Powell signals Fed will taper stimulus this year
US markets were propelled to yet more record highs today after the chair of the US Federal Reserve indicated the central bank may start to wind down stimulus measures this year.
The S&P 500 touched a record high today, before paring back slightly to rise 0.90 per cent to 4,510.49 points during early afternoon trading.
Meanwhile, the Dow Jones climbed 0.72 per cent to hit 35,467.26 points, and the tech-heavy Nasdaq soared 1.26 per cent to 15,133.51 points, also a record high.
Jerome Powell said the US economy has reached a point where it no longer needs the same scale of monetary policy support, but reiterated that interest rate hikes are a long way off at his keynote speech at the Jackson Hole economic symposium today. However, he did not provide a concrete timeline for scaling back support.
Andrew Boyle, CEO of LGB & Co, said: “The US equity market indices continued their rising trend of the last week in response to Powell’s presentation as he confirmed market expectations for a policy statement on the tapering of bond purchases in November and implementation in December.”
“His message that tapering is not tightening gave market participants additional hope that tapering would have less impact on monetary conditions than some have feared.”
Yields on 10-year Treasuries edged down to 1.316 per cent today.
This article first appeared in CityAM - read it in full here.