Shares hit another record high as the Federal Reserve’s commitment to easy monetary policy helped bolster market sentiment. Treasuries rose, while the dollar fell.
The S&P 500 climbed for a second straight day. The Nasdaq 100 outperformed amid a rally from giants such as Apple Inc. and Amazon.com Inc. The Dow Jones Industrial Average fell. GameStop Corp. blasted after announcing plans to elect Ryan Cohen as the next chairman, further boosting the activist investor’s influence at the video game retailer.
The accommodating outlook for the Fed minutes keeps investor optimism alive amid regular reminders that the pandemic is far from over. The main event Thursday for monetary policy watchers will be Fed Chairman Jerome Powell’s contribution to a panel on the global economy at noon. Unemployment insurance claims from the United States surged unexpectedly for a second week, underscoring the volatile nature of the labor market recovery.
“The claims were disappointing. They show that the recovery will be patchy, and that’s what the Fed has said, ”noted Fiona Cincotta, senior financial markets analyst at City Index. As T-bill yields decline, tech stocks are once again getting “a real boost” today, she added.
With the new S&P 500 high on Wednesday, a technical indicator has the most overbought equity benchmark since February. The GTI global strength indicator – measuring upward and downward movements in successive closing prices – broke 70 on Tuesday and is now the highest since the index sold off in the middle of this month.
“We might see some strength in the short term, but in the long term we are a little more cautious of potential weakness,” said Anna Han, equity strategist at Wells Fargo Securities.
Here are some of the main movements in the markets:
The S&P 500 gained 0.2% at 10:22 a.m. New York time.
The Stoxx Europe 600 index climbed 0.4 percent.
The MSCI Asia Pacific index rose 0.3%.
The Bloomberg Dollar Spot Index fell 0.3%.
The euro gained 0.3 percent to US $ 1.1904.
The Japanese yen appreciated 0.7 percent to 109.10 per dollar.
The yield on two-year Treasury bills fell by less than a basis point to 0.15 percent.
The yield on 10-year Treasuries fell four basis points to 1.63 percent.
The yield on 30-year Treasuries fell four basis points to 2.32 percent.
West Texas Intermediate crude fell 1 percent to US $ 59.17 per barrel.
Gold strengthened 1.1% to US $ 1,756.68 an ounce.