Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON

MarketScreener Homepage  >  News  >  Economy & Forex

News : Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

S&P closes slightly higher after Fed minutes feed stable rate view

04/07/2021 | 04:22pm EDT
FILE PHOTO: The front facade of the NYSE is seen in New York

NEW YORK (Reuters) - Major averages hovered near unchanged on Wednesday, with the S&P 500 closing up slightly after the Federal Reserve released minutes from its most recent meeting that reinforced the U.S. central bank's position to remain patient before raising rates.

The major indexes held near unchanged for most of the day but the S&P 500 briefly climbed to a session high after the minutes, in which Fed officials said it would likely take "some time" for substantial further progress on goals of maximum employment and stable prices.

The gains were minor and short-lived. Many market participants question whether the Fed will hold off so long on a rate hike.

"We thought we were going to get something new from the minutes of the Fed meeting, we were oddly mistaken on that one," said Art Hogan, chief market strategist at National Securities in New York.

"The Fed has been more transparent all of this year about where they stand and they really are not budging from that stance."

The yield on the benchmark 10-year U.S. Treasury note moved higher late in the session, yet remained below a 14-month high of 1.776% hit on March 30. The recent pullback in yields has helped growth names and lifted technology and communication services stocks as the best performing sectors on the day.

The Dow Jones Industrial Average rose 16.02 points, or 0.05%, to 33,446.26, the S&P 500 gained 6.01 points, or 0.15%, to 4,079.95 and the Nasdaq Composite dropped 9.54 points, or 0.07%, to 13,688.84.

Value stocks, which include economically sensitive sectors such as materials and industrials, maintain a strong lead this year over their growth counterparts, dominantly tech-related firms.

However, a resurgence in demand for tech stocks in recent sessions amid renewed restrictions in Canada and parts of Europe has raised questions over the longevity of the value trade.

Growth stocks, up 0.28%, outperformed value shares, which were down 0.16% during the session.

The graphic on 1-year spread between growth and value stocks:

The upcoming earnings season and progress in a multitrillion-dollar infrastructure proposal could decide Wall Street's path forward.

Analysts have raised expectations for first-quarter S&P 500 earnings increase to 24.2%, according to Refinitiv IBES data as of April 1, versus 21% forecast on Feb. 5.

But the sharp run up in earnings expectations could leave the market primed for disappointment.

JPMorgan Chase & Co Chief Executive Officer Jamie Dimon said the United States could be in store for an economic boom through 2023 if more adults get vaccinated and federal spending continues.

Prison operator GEO Group fell 20.38% after suspending quarterly dividend payments.

Declining issues outnumbered advancing ones on the NYSE by a 1.38-to-1 ratio; on Nasdaq, a 2.22-to-1 ratio favored decliners.

The S&P 500 posted 32 new 52-week highs and no new lows; the Nasdaq Composite recorded 63 new highs and 34 new lows.

Volume on U.S. exchanges was 9.41 billion shares, the third straight session marking the lowest daily volume of the year, compared with the 12.16 billion average for the full session over the last 20 trading days.

(Reporting by Chuck Mikolajczak; Editing by David Gregorio)

By Chuck Mikolajczak


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
DJ INDUSTRIAL 0.16% 33730.89 Delayed Quote.10.26%
NASDAQ 100 -1.31% 13803.914313 Delayed Quote.8.52%
NASDAQ COMP. -0.99% 13857.840311 Delayed Quote.8.60%
S&P 500 -0.41% 4124.66 Delayed Quote.9.90%
Latest news "Economy & Forex"
05:57pGameStop CEO forfeits over 587,000 shares for not meeting targets
RE
05:41pClearing a Path Toward Transparency, Inclusion, and Sustainability in Panama
PU
05:41pWORLD BANK  : Promoting Climate Change Action in Latin America and the Caribbean
PU
05:39pCLARIDA : If inflation expectations 'drift up persistently,' Fed would need to respond
RE
05:32pUK finance lobby urges rules rethink to unlock capital for COVID-19 recovery
RE
05:32pNew Zealand House Prices Hit New Record High in March
DJ
05:25pAGA AMERICAN GAS ASSOCIATION  : Natural Gas Distribution Emissions Continue to Fall
PU
05:13pUtilities Up As Sector's Upward Momentum Gains Steam -- Utilities Roundup
DJ
05:11pCANADA STOCKS - TSX falls 0.17% to 19,171.66
RE
05:11pCommunications Services Down On Value Bias -- Communications Services Roundup
DJ
Latest news "Economy & Forex"