S&P jumps, Treasury yields salvage losses on Fed’s dovish stance
The S&P 500 and the Dow ended their sessions higher, while Treasury yields salvaged minimal losses. This came after the Federal Reserve’s policy meeting rendered a dovish outlook, with central bank members believing that the country’s economic recovery is still fragile despite signs of progress.
The Dow Jones Industrial Average gained 0.05%, while the S&P 500 recorded a 0.15% increase. The tech-heavy Nasdaq, together with economically sensitive small caps and transports, closed lower.
Minutes of the U.S. Federal Reserve’s latest policy meeting greatly affected investors’ sentiment as participants decided to keep the central bank’s accommodative stance until the country’s recovery was more stable. This also supported Treasury yields as expectations arise that interest rates will remain loose.