- Both the S&P 500 and the NASDAQ hit record closing highs on Wednesday after the US Federal Reserve suggested it would maintain its monetary policies
- Officials feel that further economic recovery needs to be made, but are poised to take action if risks materialise
- Meanwhile, China’s market regulator said it had fined a number of high-profile internet companies, adding to the woes of newly-listed DiDi
- DiDi, which listed on the NYSE just last week, fell 4.6 per cent on Tuesday, adding to an already steep decline
- All up, the Dow Jones Industrial Average rose 0.3 per cent, while the S&P 500 gained 0.34 per cent and the NASDAQ jumped 0.01 per cent
Both the S&P 500 and the NASDAQ hit record closing highs on Wednesday after minutes from the US Federal Reserve’s latest meeting suggested officials are not yet ready to tighten their policies.
According to the notes, the US central bank felt that substantial further progress on economic recovery “was generally seen as not having yet been met,” but officials are poised to act if inflation or other risks materialise.
“I read this as effectively a dovish set of notes simply because they don’t feel as a group that they have enough certainty around the situation to make any changes at all,” said Brad McMillan, chief investment officer at Commonwealth Financial Network in Waltham, Massachusetts.
Wall Street has been concerned about the prospect of rising inflation, with investors bouncing between economy-dependent “value” stocks and more tech-focused “growth” names in recent months.
Meanwhile, China’s market regulator said it had fined a number of high-profile internet companies, including DiDi Global, Tencent and Alibaba, for failing to report earlier merger and acquisition deals for approval.
DiDi, which listed on the NYSE just last week, fell 4.6 per cent on Tuesday, adding to an already steep decline that’s seen its share price fall almost 20 per cent.
All up, the Dow Jones Industrial Average rose 0.3 per cent, while the S&P 500 gained 0.34 per cent and the NASDAQ jumped 0.01 per cent.