The Dow Jones and the S&P 500 erased early losses and are trading higher after Fed Chair Powell reaffirmed that the economy needs support during his semiannual testimony before Congress. Bond buying will continue at its current pace until FED sees the actual data moving closer to inflation and employment goals. Powell said that there is a lot of slack in the labor market and there is a long way to go to maximum employment.
Today's comments from Powell did not provide any new news regarding the Fed's further policy, but did lead to a rebound in the stock market. Today, investors' attention is focused on rising US bond yields. Yields are rising even though the Fed reiterates that the current policy will not change for a long time.
Start investing today or test a free demo
Open account Try demo Download mobile app Download mobile app
US30 moved sharply higher during Powell's testimony and is currently testing its all-time high at 31664 pts. Source:xStation5
This content has been created by XTB S.A. This service is provided by XTB S.A., with its registered office in Warsaw, at Prosta 67, 00-838 Warsaw, Poland, entered in the register of entrepreneurs of the National Court Register (Krajowy Rejestr Sądowy) conducted by District Court for the Capital City of Warsaw, XII Commercial Division of the National Court Register under KRS number 0000217580, REGON number 015803782 and Tax Identification Number (NIP) 527-24-43-955, with the fully paid up share capital in the amount of PLN 5.869.181,75. XTB S.A. conducts brokerage activities on the basis of the license granted by Polish Securities and Exchange Commission on 8th November 2005 No. DDM-M-4021-57-1/2005 and is supervised by Polish Supervision Authority.
