Wall Street finishes in the green, DJIA 240 points up post FOMC
|- DJIA, climbed 240.29 points, or 0.9%, to 26,202.73.
- S&P 500 index climbed 23.92 points, or 0.8%, to 2,924.43.
- The Nasdaq Composite Index ran up 71.65 points, or 0.9%, to 8,020.21.
The Federal Open Market Committee minutes was the one to watch in the US session which did little to sway the market's opinion that the Federal Reserve will cut interest rates again, likely as soon as the next meeting around in September.
FOMC minutes highlights:
- Participants said forward guidance and QE might not be enough to eliminate protracted risks at the lower bound.
- Several said uncertainties remained about the efficacy of QE.
- A number of Fed officials stressed the need for Fed flexibility.
- A couple of policymakers would have preferred a 50 bp cut to address low inflation.
- Several favoured maintaining rates unchanged.
- Those who favoured cut pointed to decelerating economy, elevated risks on the global economy and inflation.
- A few policymakers expressed concern of 3m/10y yield curve inversion.
Consequently, the Dow Jones Industrial Average, DJIA, climbed 240.29 points, or 0.9%, to 26,202.73, while the S&P 500 index climbed 23.92 points, or 0.8%, to 2,924.43. The Nasdaq Composite Index ran up 71.65 points, or 0.9%, to 8,020.21. The upside performance followed the minutes from the Federal Reserve’s July 30-31 meeting which showed the Fed is ready to act if need be with respect to implementing policy changes.
DJIA levels
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