The Dow closed at a record high Wednesday, as value sectors like energy and industrials continue to gather steam amid expectations that another round of stimulus and the ongoing vaccine roll out will spur a stronger economic recovery.
Asian stocks jumped on Thursday after U.S. Federal Reserve Chair Jerome Powell reaffirmed interest rates would stay low for a long time, calming market fears that higher inflation might prompt the central bank to tighten the monetary spigot.
Federal Reserve Chair Jerome Powell, pushing back on suggestions that loose monetary policy risked unleashing inflation and financial risks in what may be an emerging economic boom, said the central bank would keep its attention focused on getting Americans back to work as a vaccine-related recovery proceeds.
Wall Street retreated on Tuesday as investors shifted away from mega-cap growth stocks, but the sell-off eased following reassurances from U.S. Federal Reserve Chairman Jerome Powell.
Bond markets steadied, the U.S. dollar fell and stocks edged ahead on Wednesday after central banks from Washington to Wellington vowed to keep monetary policy loose for a long time, giving investors enough confidence to seek out riskier assets.
Gold steadied after advancing for two days as investors awaited testimony from Federal Reserve Chair Jerome Powell, and weighed the prospect of a large U.S. stimulus package moving closer to approval.
