Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Wall St ends higher as Fed signals bond-buying taper soon

Stock MarketsSep 22, 2021 08:08PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
2/2 © Reuters. FILE PHOTO: A street sign for Wall Street is seen outside the New York Stock Exchange (NYSE) in New York City, New York, U.S., July 19, 2021. REUTERS/Andrew Kelly/File Photo 2/2

By Caroline Valetkevitch

NEW YORK (Reuters) - The three major U.S. stock indexes rose 1% on Wednesday as investors mostly took in stride the latest signals from the Federal Reserve, including clearing the way for the central bank to reduce its monthly bond purchases soon.

The S&P 500 registered its biggest daily percentage gain since July 23.

While trading was choppy following the Fed's latest policy statement and comments by Fed Chair Jerome Powell, stocks finished close to where they were before the central bank news.

In its statement, the central bank also suggested interest rate increases may follow more quickly than expected and said overall indicators in the economy "have continued to strengthen."

Stocks began the day higher as concerns eased over a default by China's Evergrande. Evergrande's main unit said it had negotiated a deal with bondholders to settle interest payments on a domestic bond.

Bank shares rose following the Fed news, with the S&P banks index ending up 2.1% on the day, and S&P 500 financials up 1.6% and among the biggest gainers among sectors.

Some strategists viewed the Fed's comments as mixed.

"So they said we're going to probably start to taper, but they haven't said when and haven't said how much, so we're kind of back where we were a day ago," said Paul Nolte, portfolio manager at Kingsview Investment Management in Chicago.

"Those remain open questions," he said. "Also, financial conditions remain very easy, and that's part of the reason why markets aren't going crazy at this point."

The Dow Jones Industrial Average rose 338.48 points, or 1%, to 34,258.32, the S&P 500 gained 41.45 points, or 0.95%, to 4,395.64 and the Nasdaq Composite added 150.45 points, or 1.02%, to 14,896.85.

Apple (NASDAQ:AAPL) and other big technology-related names gave the S&P 500 its biggest boost.

On the downside, FedEx Corp (NYSE:FDX) tumbled 9.1% after posting a lower quarterly profit and as the delivery firm cut its full-year earnings forecast.

Advancing issues outnumbered declining ones on the NYSE by a 3.88-to-1 ratio; on Nasdaq, a 2.38-to-1 ratio favored advancers.

The S&P 500 posted nine new 52-week highs and eight new lows; the Nasdaq Composite recorded 52 new highs and 66 new lows.

Volume on U.S. exchanges was 9.91 billion shares, compared with the 9.99 billion average for the full session over the last 20 trading days.

Wall St ends higher as Fed signals bond-buying taper soon
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (7)
chetan sunny
chetan sunny Sep 22, 2021 8:43PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Markets reacting overly ..just like bond yields last time.
George Orwell
George Orwell Sep 22, 2021 1:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Wall street fake panic again.
Paul Richard
Paul Richard Sep 22, 2021 12:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
SP500 above 4500 before end of week!
Mitchel Pioneer
Mitchel Pioneer Sep 22, 2021 12:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Isn't that nice, another completely uninterrupted "rally."  None of the intraday gyrations that losses face.  No downturn at 11, no mid-day reversal, nothing.  Another tightrope walk.  Will it lose 60% "in late trade?"  Of course not, it'll set a closing high to completely erase the loss from the other day.  How convenient.  Only in the US Ponzi Scheme, greatest financial FRAUD in history, and biggest investment JOKE in the world.
AI Wu
AI Wu Sep 22, 2021 12:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it is joke no doubt.  everyone knows that but keep dancing while the music is playing. no one is guessing when the music stops.
Emmanuel Jabin
Emmanuel Jabin Sep 22, 2021 12:14PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
it is a simple game of "musical chairs". who will be left holding the bags when the fall finally happens. for now, they all continue pretending all is well with the markets.
William Bailey
William Bailey Sep 22, 2021 12:00PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
“Substantail furthur “ BS and “Extrordinary” BS on the agenda !!!
Rocky handsum
Rocky handsum Sep 22, 2021 9:58AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
I think it's a Good Opportunity for banking sector..
Ronald Warren
Ronald Warren Sep 22, 2021 9:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
My Guess? Powell is going to drop the hammer. Fed members liquidated their holdings. We'll see!
William Bailey
William Bailey Sep 22, 2021 9:32AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Sustantail Furthur BS and Extrordinary BS
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email