S&P 500 Index opens at fresh all-time highs, closes in on 3,500
|- Wall Street's main indexes opened mixed on Thursday.
- FOMC Chairman Powell says Fed will target average inflation.
- Financial shares post gains on rising US T-bond yields.
Major equity indexes in the US started the day mixed on Thursday as investors assess the Federal Reserve recently announced new monetary strategy. As of writing, the S&P 500 was at a fresh all-time high of 3,486, gaining 0.23% on a daily basis. Meanwhile, the Dow Jones Industrial Average was up 0.57% at 28,487 and the Nasdaq Composite was posting small daily losses at 11,968.
In his prepared remarks at the Jackson Hole Symposium, FOMC Chairman Jerome Powell announced that the Fed will target average inflation as its new strategy. Although the initial reaction weighed on the greenback and the US Treasury bond yields, Powell's comment about allowing only a "moderate overshoot" of inflation seems to be causing a shift in market sentiment.
At the moment, the 10-year US Treasury bond yield is up 3.3% on a daily basis. Boosted by surging T-bond yields, the rate-sensitive S&P 500 Financials Index is up 1.3% as the biggest percentage gainer among major sectors. On the other hand, the Communication Services Index is down 0.7%.
S&P 500 chart (daily)
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.