European stocks are poised to track Wall Street’s gains after the Fed still has no plans to tighten – or even withdraw asset purchases, until the US economy recovers more securely.
US futures continue to rise after modest gains set the S&P 500 to a new record on Wednesday, despite declining US stock market volume
The S&P 500 and Nasdaq traded slightly higher today as the SPX is back on ATH as the Fed’s comment boosts investor expectations that the central bank plans to maintain its political support, despite the huge fiscal costs of the recent government stimulus package.
“Investors remain strongly focused on interest rates,” said Jeff Buchbinder, a stock strategist at LPL Financial in Boston. “We in the market did not expect any signals for a change in policy and we received it.”
The Federal Reserve expressed caution about the continuing risks of the pandemic and reaffirmed its commitment to strengthening the economy, given that “the way forward remains very uncertain,” the March 16-17 minutes of the meeting said.
The 10-year yield rose at the end of the session, but still remained below the 14-month high of 1.776% reached on March 30.
The Dow Jones Industrial Average rose 0.05% to 33,500, the S&P 500 gained 0.30% to 4,097.3, and the Nasdaq Composite fell 0.63% to 13,719.2.
In the forex market EUR / USD remains below 200-MA, but with risk-on sentiment and continuing rising indices in today’s sessions we will probably see a breakthrough,
Junior Trader Mert Mustafa