Are you also trying to find out the reasons that drive the U.S stock rally in the pandemic hit market? The S&P 500 turned positive on Wednesday after Federal Reserve pledged support again for the economy.
Before the Feds statement, the S&P 500 was down about 0.8 per cent. The technological sector led the gains following Nasdaq went more than 1 per cent up.
But Federal Reserve policymakers project a decline in gross domestic products by 6.5 per cent this year. They also added the unemployment rate could increase to 9.3 per cent by the end of 2020.
What Are Experts Saying?
Charlie Ripley, the senior market strategist for Allianz Investment Management in Minneapolis, said, “We didn’t expect any change in the policies when heading into the meeting. The Fed is committed to following current easing measures and keeping them in place along with acknowledged the present risk.“
The promise of losing monetary policy until the U.S economy is back on track repeats an early pledge made in the central bank’s response to the coronavirus outbreak.
U.S Market Analysis
The Dow Jones Industrial Average went up by 0.23 per cent to 27,334.63, the S&P 500 was increased by 0.46 per cent to 3,221.88, and the Nasdaq Composite gained 1.28 per cent to 10,080.87