Equity Markets

Wednesday was a Fed day – global central banks have played a crucial part in providing aid and support to the global economy during the coronavirus pandemic. Faced with an unprecedented crisis, central bankers have rapidly deployed various monetary tools to keep credit flowing and support businesses and households.

Investors were eagerly looking forward to the Fed’s statement and forecasts for clues on how the Fed is viewing the health of the economy after easing lockdown measures. The Fed decided to maintain the target range for the federal funds rate at 0 to 1/4 percent. The Fed expects to maintain this target range until it is confident that the economy has weathered recent events and is on track to achieve its maximum employment and price stability goals.

Wall Street ended on a mixed note following the Fed’s interest rate statement and economic projections. Chairman Jerome Powell forecasts a long and slow recovery for the US economy but states that they remain supportive to assist with the recovery:

• Dow Jones Industrial Average erased 282 points or 1% to 26,990.
• S&P 500 lost 17 points or 0.5% to 3,190.
• Nasdaq Composite rose by 67 points or 0.7% to 10,020.

Heavy-tech index closed at a record high lifted by strong gains by Microsoft, Apple and Amazon.

Source: Bloomberg Terminal