Dow closes at record high after Powell backs continued low interest rates
- The Dow closed at a record high on Wednesday after Federal Reserve Chairman
Jerome Powellexpressed his support for continued low interest rates.
- In a speech to the Economic Club of New York, Powell said addressing the current economic environment will require "patiently accommodative monetary policy."
- Sign up here for our daily newsletter, 10 Things Before the Opening Bell.
Powell stressed that accommodative monetary policy is still necessary to combat the economic uncertainty caused by the COVID-19 pandemic.
"Fully realizing the benefits of a strong labor market will take continued support from both near-term policy and longer-run investments," Powell said.
Powell sees the actual US unemployment rate closer to 10% due to the recent reduction in the labor force, which is nearly double the official rate of 6.3%.
The Dow traded higher, while the S&P 500 and Nasdaq 100 were slightly lower.
Here's where US indexes stood at the 4:00 p.m. ET close on Wednesday:
- S&P 500: 3,909.90, down 0.03%
- Dow Jones industrial average: 31,438.40, up 0.2% (62.57 points)
- Nasdaq composite: 13,972.53, down 0.25%
Read More: GOLDMAN SACHS: Buy these 26 'best of both worlds' stocks set to soar with economic recovery even if interest rates stay low
Another surge in dogecoin occured on Wednesday after Elon Musk once again tweeted about it, saying that he bought some for his son.
Pacific Biosciences soared as much as 25% after Softbank said it invested $900 million in the diagnostics company.
Better than expected corporate earnings from Lyft and Twitter sparked a 11% and 16% surge in their stock prices, respectively.
The SPAC craze showed no sign of slowing down on Wednesday, with former NFL player Colin Kaepernick launching his own SPAC, seeking to raise $250 million to fund a $1 billion acquisition of a firm with a social purpose.
Electric truck developer Rivian, a rival to Tesla, is reportedly seeking an IPO this year, which could give it a valuation of at least $50 billion.
Cannabis stocks continued their surge higher on Wednesday as hopes for US legalization under a Biden administration continued.
Oil prices rose. West Texas Intermediate crude jumped 0.27%, to $58.52 per barrel. Brent crude, oil's international benchmark, gained 0.26%, to $61.25 per barrel, at intraday highs.
Gold rose 0.26%, to $1,842.30 per ounce.
Read More: Credit Suisse says to buy these 16 'highest-conviction' stock picks that are set to outperform despite the market's contrarian view
- Financial inclusion made easy for India’s small merchants with Paytm’s pioneering QR codes and Soundbox
- With Rupay Credit Card on UPI, mobile payments pioneer Paytm deepens its leadership in UPI
- A 24-year-old stock trader who made over $8 million in 2 years shares the 4 indicators he uses as his guides to buy and sell
- 10 Must-Do activities on your next Darjeeling Trip
- Govt received ₹1,70,501 crore in April as revenue
- Shubman Gill, Sunil Narine, Virat Kohli & more: IPL man of the series winners since 2008
- Five personal finance deadlines you can’t afford to miss in June
- List of famous things to buy in Darjeeling