At that point, the Fed could decide to begin raising its key short-term interest rate, which affects many consumer and business loans. If that pace is maintained, the Fed could be done winding down its bond purchases as early as June. Eastern, the Fed said it will begin reducing its $120 billion in monthly bond purchases in the coming weeks by $15 billion a month. All three indexes set their latest record closing highs. The Nasdaq climbed 1%, extending its winning streak to an eighth day.
On Wall Street, the S&P 500 rose 0.6% and the Dow Jones Industrial Average added 0.3%, both marking their fifth straight gain. Eyes also remain on earnings reports expected from an array of companies in Asia, including Japanese automakers and technology companies. “We got a ‘dowkish’ Fed move,” was the way RaboResearch characterized the message.īut long-term worries about Asian economies remain because of concerns there may be a sixth wave of coronavirus infections, despite growing signs of a return to normal economic activity and a freer flow of people traveling in some nations. Analysts said the signs from the Fed continued to be dovish, as well as hawkish, reassuring global markets that interest rates weren't going to be raised for some time.
