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US markets end higher following fed announcement

23 Sep 2021 Evaluate

The US markets ended higher on Wednesday as traders picked up stocks at reduced levels following the slump seen during the month of September. With the upward move on the day, the Dow bounced off its lowest closing level in three months, while the S&P 500 rebounded from a two-month closing low. Stocks held on to strong gains even as the Fed hinted tapering of its asset purchases could begin in the near future amid continued progress towards it goals of maximum employment and price stability. The Fed said in the announcement of its latest monetary policy decision that a moderation in the pace of asset purchases may soon be warranted if progress towards its dual goals continues broadly as expected.

Fed Chair Jerome Powell indicated the central bank could begin tapering its asset purchases as soon as its next meeting in early November. Powell said while no decisions were made, participants generally viewed that so long as the recovery remains on track, a gradual tapering process that concludes around the middle of next year is likely to be appropriate. Powell stated substantial further progress has been achieved with regard to the Fed's inflation goal, while the test for substantial further progress on employment is all but met.

The Dow Jones Industrial Average rose 338.48 points or 1 percent to 34,258.32, the Nasdaq surged 150.45 points or 1.02 percent to 14,896.85 and the S&P 500 edged up by 41.45 points or 0.95 percent 4,395.64.

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