Wall Street up as Fed pledges continued support
|- US indexes maintained a positive tone and advanced post-FOMC.
- The Dow Jones Industrial Average added 104 points, the Nasdaq ticked 1.42% higher.
- Demand for the greenback eased, but the dollar is still the strongest.
Wall Street managed to post gains on Wednesday, finding mild support on the FOMC Meeting Minutes released in the American afternoon. The document showed that Fed officials consider the standard of “substantial further progress” needed to adjust monetary policy was seen as not having yet been met. Various FOMC members mentioned they expect conditions to reduce the pace of asset purchases to be met earlier than previously expected.
A substantial majority of participants judged that the risks to their inflation projections were tilted to the upside, yet beyond that, the document didn't offer any fresh insights regarding the timing of tapering but showed that some policymakers saw the uncertainty around the economic outlook elevated after the latest data.
The Dow Jones Industrial Average added 104 points to settle at 34,681, while the S&P 500 advanced 0.40% and settled at 4,361. The Nasdaq Composite posted a modest 1.42% advance, ending the day at 14,665.
The DJIA trimmed half of its Tuesday’s losses, still down for the week. The index retains its positive stance in the daily chart, but additional gains in the near-term are in doubt. The 4-hour chart shows that the index is developing below a flat 20 SMA while above the longer ones, which remain directionless. The RSI indicator advanced into positive ground, but the Momentum indicator holds flat within negative levels.
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