S&P 500 ekes out small gain as the Federal Reserve stays the course with easy policy
The S&P 500 closed slightly higher after Federal Reserve Chairman Jerome Powell said the central bank will maintain its easy monetary policies.
The broad index added 0.12% to reach 4,374.30 after hitting a new high earlier in the session. The Dow Jones Industrial Average added 44.44 points, or 0.13%, to close at 34,933.23. The Nasdaq Composite fell 0.22% to 14,644.95.
Powell said in his semiannual testimony before the House Committee on Financial Services Wednesday that the central bank can wait before it starts to ease its bond purchases despite surging inflation readings. The Fed chair said he still expects inflation to moderate.
The central bank chief is also scheduled to testify before the Senate Committee on Banking, Housing and Urban Affairs on Thursday.
The yield on the 10-year Treasury fell amid Powell’s remarks, continuing its decline in recent months. Yields fell even as a reading on producer prices from June showed higher than expected inflation. This follows the biggest jump in the consumer price index since 2008, released on Tuesday.
Meanwhile, the Nasdaq 100 closed at an all-time high, boosted by Apple’s record close.
Reference: CNBC
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