By Yasin Ebrahim
Investing.com – S & P 500 rose on Wednesday. This was driven by energy and finance as the broader market showed signs of potential tapering in November.
The Nasdaq rose 1%, up 1.1%, or 369 points, up 0.8%.
“If progress continues broadly as expected, the Commission will soon justify a slowdown in the pace of asset purchases,” the Federal Reserve Board said in a statement.
Federal Reserve Board Chair Jerome Powell later suggested that the taper could begin in November and end in mid-2022. In a press conference following the monetary policy statement, Powell said, “Participants are generally likely to have a gradual tapering process that ends around mid-next year, as long as the recovery is on track. I’m watching. ”
However, until the meeting, many analysts were betting on the November taper, suggesting that the price of the announcement was.
The recycling sector, including energy, rose more than 3%, supported by higher oil prices following data showing that US weekly oil supplies fell more than expected last week.
Last week’s inventories fell 4.7 million barrels, compared to analysts’ expectations of 2.4 million barrels.
Commerzbank (DE :) also said to oil by “news that OPEC countries in Nigeria and Angola, and OPEC + member Kazakhstan, have long-lasting difficulties in expanding production due to lack of investment.” He said his feelings were upheld.
After Evergrande agreed to settle interest payments on domestic bonds on Wednesday, further boosts in sentiment against liquidity stocks (stocks that move in tandem with the economy) have subsided the fear of transmission in China, leaving central China It has sent more liquidity to the financial system.
Meanwhile, at Big Tech, Facebook (NASDAQ :) fell 4% after a social media giant warned that Apple’s (NASDAQ :) ad tracking would hurt growth, hampering the sector.
A broader market attempt to initiate a rebound is shortly before the Federal Reserve’s monetary policy decisions, and the Federal Reserve’s plan to taper bond purchases could dominate investor attention. I have.
“The FOMC is most hoping that the two-day meeting will end this afternoon (9/22) and the Fed will signal (or at least give a hint) the start of the taper in November.” Credit suisse (SIX :) I said in a memo.
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S & P 500 Rally, Investing.com Wins November Taper Signal with Stride
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