U.S. stocks attempt to build on bounce, with all eyes on Fed’s Powell
What drove the market?
The S&P 500 index ended Tuesday near a new closing record, while the Nasdaq Composite reached a new all-time high, led by technology stocks. Netflix NFLX, +0.63%, Amazon AMZN, -1.11%, Apple AAPL, +0.79% and Microsoft MSFT, +1.32% and Facebook FB, -0.30% all gained, and even Alphabet GOOGL, +0.29% GOOG, +0.33% rose even though the European Commission opened a probe into Google’s advertising business.
U.S. stocks advanced as Chair Powell testified before the House select subcommittee on the coronavirus pandemic, marking his first public appearance since last Wednesday when he acknowledged that policy makers had started to discuss the eventual reduction of the Fed’s monthly bond purchases.
In responding to questions from Congress, Chair Powell on Tuesday again signaled the central bank would be patient before scaling back its lose monetary policy, saying the Fed had to be “very humble” about its ability to draw a signal out of the economic data given “such an unusual setting of reopening the economy.”
“U.S. stocks pushed higher after Fed Chair Powell’s testimony calmed financial market worries over runaway inflation triggering a quicker removal of stimulus,” said Edward Moya, Senior Market Analyst, The Americas, at OANDA.
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