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Tuesday, October 4, 2022

Dow breaks 4-day losing streak amid optimism from Fed meeting

September 22 (WNN) — The Dow Jones Industrial Average gained 338 points on Wednesday to break a four-day losing streak, as markets reacted to the Federal Reserve maintaining its pandemic monetary policies.

The blue-chip index closed up 1% after news of the conclusion of a two-day meeting of the Federal Open Market Committee, while the S&P 500 rose 0.9% and the Nasdaq Composite 1.02%.

The central bank is purchasing $120 billion per month of treasury and mortgage-backed securities in response to the COVID-19 pandemic, and in a post-meeting statement the Fed said “a moderation in the pace of asset purchases may soon be warranted.” is” but did not set a specific date.

According to CNBC, Peter Boukwar, chief investment officer at Blakely Advisory Group, said, “However, a tender announcement, maybe coming in November, that they haven’t done today.”

The committee voted unanimously to keep short-term interest rates at 0% to 0.25% at the same level since March 2020, although the Fed indicated a potential interest rate hike in 2022.

Wednesday’s news had little impact on bond yields, with the 2-year Treasury yield rising above 0.24% and the 10-year rate below 1.3% before eventually falling to a session low of 1.33%.

Commodity-related stocks bounced back on Wednesday as investors watched over concerns of Chinese property developer Evergrande’s easing debt crisis.

APA stock gained 7.19%, Devon Energy by 6.84%, Diamondback Energy by 5.42% and Marathon Oil by 5.35%.

Wednesday’s gains came as the three major indices struggled in September with the Dow down 3% in the month, while the S&P is down 2.8%.

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World Nation News Desk
World Nation News Deskhttps://worldnationnews.com/
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