Wall Street gained ground and US Treasury yields fell on Wednesday after the Federal Reserve signalled a pause in the current easing cycle following the expected announcement of a rate cut. At the conclusion of its two-day monetary policy meeting, the Fed cut key interest rates for the third time this year. ‘We believe that monetary policy is in a good place,’ Fed Chair Jerome Powell said in a news conference.
Stocks retraced losses from earlier, when a spate of mixed corporate earnings and a decline in the US GDP growth rate kept investors cautious. The Commerce Department’s advance reading of third-quarter GDP showed the US economy expanded at a 1.9 per cent annual rate, down from 2 per cent in the second quarter but beating the 1.6 per cent growth rate analysts expected.
The Dow Jones Industrial Average rose 115.27 points, or 0.43 per cent, to 27,186.69, the S&P 500 gained 9.88 points, or 0.33 per cent, to 3,046.77 and the Nasdaq Composite added 27.12 points, or 0.33 per cent, to 8,303.98. The pan-European STOXX 600 index rose 0.08 per cent and MSCI’s gauge of stocks across the globe gained 0.23 per cent.
However, emerging market stocks lost 0.10 per cent. MSCI’s broadest index of Asia-Pacific shares outside Japan closed 0.11 per cent lower, while Japan’s Nikkei lost 0.57 per cent. The US Treasury yields dropped following the Fed’s announcement.Morning-Market-Note-Thursday-31st-October