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On Wall Street S&P 500 to record after Fed meeting


Wall Street ended Wednesday and raised the S&P 500 to a new record, while the US Central Bank (Fed), surprisingly, cut interest rates and said it would wait before making a new decision.

The index representing the 500 largest companies listed on the New York Stock Exchange rose 0.33% to 3,046.77 points, a new level.

The leading Dow Jones Industrial Average index gained 0.43%, ending with 27,166.69 points, and Nasdaq, with a strong technological color, increased by 0.33% to 8,303.98 points.

"Market players had exactly what they wanted (from the Fed) and were able to, after two days of waiting and see, breathe a sigh of relief," said Art Hogan of National Holdings.

As investors generally expect, the Fed Monetary Committee has actually decided to lower rates by a quarter percentage point (0.25%) every day, in the range of 1.50% to 1 75%. This is the third straight fall in three months.

But the Fed also decided to remove the key sentence from the statement that the institution "will work properly to support expansion."

The president of the institution also said at a press conference that there should be a "noticeable change" in the Fed's forecasts to adjust interest rates in one way or another.

Therefore, one should observe a steady rise in inflation "even before considering raising rates," he said.

In the end, "the Fed reassured investors, saying that if he took a break in rate cut, he also rejected the idea of ​​impending growth," said Hogan.

The indicators of the day for the US economy were rather encouraging.

According to the Department of Commerce's first estimate, US economic growth slowed slightly in the third quarter, but remained above expectations, with gross domestic product (GDP) rising 1.9% over a year.

The private sector in the United States also created more jobs than expected in October, according to ADP's monthly business services survey published on Wednesday, or 125,000 jobs in October, 93,000 in September.

Investors will monitor the publication of the official US employment report and the ISM indicator on manufacturing activity on Friday.

On the bond market, the yield on the 10-year US debt rate fell to 1.773%, against 1.839% on Tuesday at the close.


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