Jerome Powell hearing

Summary List Placement
S&P 500 futures hit a new high after the Fed said it planned to keep monetary policy loose.
Global stocks also rose, with investors cautiously optimistic about the economic recovery from COVID-19.
US bond yields have fallen from recent highs, helping calm nerves in the stock market.
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Futures contracts for the S&P 500 index rose to a new high on Thursday morning after minutes from the US Federal Reserve’s latest meeting showed the central bank remains committed to supporting the economy.

S&P 500 futures rose 0.31%, after the S&P 500 index closed at a record on Wednesday. Dow Jones futures inched 0.04% higher and Nasdaq 100 futures rose 0.74%.

Stocks inched higher in Asia overnight after small gains on the US stock markets on Wednesday. China’s CSI 300 rose 0.17% while Hong Kong’s Hang Seng jumped 1.53%.

In Europe, the Stoxx 600 index climbed 0.27% on Thursday morning. The UK’s FTSE 100 rose 0.14%.

Investors were in a cautiously optimistic mood after the minutes from the Fed showed that the central bank’s policymakers intended to keep purchasing US bonds at a rapid rate and hold interest rates near zero.

Most of the Federal Open Market Committee’s 18 officials at the meeting expected rates to stay near zero through 2023.

They thought the “current guidance for the federal funds rate and asset purchases was serving the economy well,” the minutes said.

Padhraic Garvey, head of Americas research at ING, said: “The central interpretation of the FOMC minutes is of a Federal Reserve that remains doggedly dovish.

“Policy rates will remain low until there has been a material recovery on the labour market. Forecasting recovery is not enough; it needs to actually happen.”

Jim O’Sullivan, chief US macro …read more

Source:: Business Insider

      

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