Stocks Close Higher as Investors Welcome Fed Decision

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Stocks rallied after the Fed opened the door to a spring rate increase. The Dow erased early losses to gain 380 points and Treasury yields rose.

U.S. stocks turned higher after Federal Reserve officials approved plans to more quickly wind down the central bank’s pandemic stimulus efforts.beginning in the spring.

The S&P 500 rose 1.6% as of 4 p.m. ET, reversing earlier declines and ending the day near a record. The Dow Jones Industrial Average added about 382 points, or 1.1%. The Nasdaq Composite Index surged 2.15%. Major indexes had pulled back this week as investors awaited the update from the U.S. central bank. Some investors said that uncertainty about the Fed’s next moves, rather than unhappiness with the potential changes in monetary policy, may have caused stocks to slip in recent sessions.

Accommodative monetary policy has helped propel U.S. indexes to dozens of records since the arrival of the coronavirus pandemic sent stocks swooning in early 2020. But surging consumer prices have intensified the focus by Fed officials on curbing inflation. Investors are eager for the central bank to shed light on its plans for ending asset purchases and raising rates.

“There’s a lot on the table for the Fed that investors are concerned about,” said Alex Chaloff, co-head of investment strategies at Bernstein Private Wealth Management.

 

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The momentary system is anthropocentric & unnecessary. Post scarcity - the solution... Poverty is essential in the current system. Value is an agreement. Technology in place of manufacturing & production creates abundance. No one needs to work. Governments represent corporations

good luck

Nothing like an interest rate increase to make stocks rally! Opposite world.

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