Stocks cheer US stimulus progress; dollar falls on dovish Fed

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Progress in US stimulus talks helps lift the Nasdaq to a second straight record, although the Dow finishes modestly lower on Wednesday, December 16.

Wall Street stocks finished mostly higher on Wednesday, December 16, while the dollar fell as markets cheered progress on United States stimulus talks and a dovish Federal Reserve announcement.for the pandemic-hit US economy, with top Senate Democrat Chuck Schumer describing the parties as"very close" to a deal.

Investors also took heart from a slightly upgraded Fed forecast for US growth in 2021 and 2022 as the central bank maintained ultralow interest rates. Sam Stovall, chief investment strategist at CFRA Research, said the US equity market"appears to be traveling on end-of-year autopilot, which should allow share prices to drift higher, unless they hit an unanticipated pothole."

"The dovish message from the Fed and its willingness to lend more support to a recovery that’s moderating will leave the greenback vulnerable to further declines," Manimbo said in a note.

 

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