Dow closes at record high as Powell signals Fed to remain accommodative

Dow closes at record high as Powell signals Fed to remain accommodative

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The Dow Jones Industrial Average closed at record highs on Wednesday as Federal Reserve Chairman Powell signaled that the Fed will continue to remain accommodative. Powell wrapped up his second day of testimony to Congress and said the economy still needs support given that the unemployment rate and inflation has yet to reach the Fed’s target. Sign up here for our daily newsletter, 10 Things Before the Opening Bell . The Dow closed at record highs on Wednesday after Federal Reserve Chairman Jerome Powell wrapped up his second day of testimony to Congress.
Powell reiterated his view that the US economy still has a long way to go before hitting the Fed’s unemployment rate and inflation targets, signalling that the Fed is likely to continue remaining accommodative with its near-zero Federal Funds Rate and monthly bond purchases.
Technology stocks rebounded following a volatile Tuesday sell-off that was sparked in part by fears of rising interest rates and inflation. The 10-year Treasury yield hit a high of 1.42% on Wednesday.
Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday:
S&P 500 : 3,925.35, up 1.13% Dow Jones industrial average : 31,961.86, up 1.35% (424.51 points) Nasdaq composite : 13,597.97, up 0.99% The volatile trading in bitcoin continued on Wednesday, as it hovered around the $50,000 level. Square and MicroStrategy both said they purchased more bitcoin, and Ark Invest’s Cathie Wood said she is still “very positive” on the cryptocurrency.
EV company Fisker Inc. soared as much as 45% after it inked a memorandum of understanding with iPhone manufacturer Foxconn to develop a new vehicle scheduled for a release in 2023.
A steep decline for Tesla this week served as an opportunity for Ark Invest to buy the dip for its investment funds, with the investment management company buying more than 200,000 shares.
But not all EVs are being bought up by Ark Invest. Churchill Capital Corp. IV has fallen over 50% since it announced a merger with Lucid Motors.
The FDA said Johnson & Johnson’s COVID-19 vaccine is safe and effective, paving the way for the vaccine to be authorized for emergency use later this week. The healthcare company said it could deliver 100 million of its single-dose vaccines by the end of June.
Warren Buffett’s right-hand man Charlie Munger blasted Robinhood, the rise of SPAC IPOs, and questioned bitcoin at the Daily Journal annual meeting. Here are the highlights of his conversation.
Oil prices were higher. West Texas Intermediate crude jumped as much as 2.53%, to $63.23 per barrel. Brent crude , oil’s international benchmark, rose 2.57%, to $67.05 per barrel.
Gold fell 0.3%, to $1,800.40 per ounce.
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