USA stocks rallied and the dollar index eased further on Wednesday after the Federal Reserve left US interest rates unchanged, keeping its low-rate environment intact for now.
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The Nasdaq composite hit a record high for a second session, gaining 44.34 points at 5,339.52.
The Federal Reserve is keeping its key interest rate unchanged but signaling that it likely will raise rates before year’s end.
The US Federal Reserve’s sugar bowl remains open for use, according to markets, judging by the solid gains yesterday and overnight in the wake of the central bank’s decision to put off a rate hike until perhaps December.
Concerns over whether the Fed would raise rates prompted a return of volatility to the stock market in recent weeks after two months of calm.
Oil prices rallied to a two-week high, helped by US government data that showed a surprising crude inventory drop.But they gave back some gains after Reuters reported that a two-day expert-level meeting of the Organization of the Petroleum Exporting Countries on production cooperation had yielded no major breakthrough.The meeting was held in advance of September 26-28 talks in Algeria between OPEC and other major oil producers to discuss a potential output freeze.Brent crude futures traded at $47.38 per barrel, after having climbed to $47.83 on Thursday.Elsewhere, copper rallied to a six-week high despite worries about slow demand growth, supported by the Fed’s policy.
In the bond market, benchmark U.S. yields hit near two-week lows on revived bets the Fed would raise interest rates slowly due to weak economic growth and inflation stuck below its 2% goal.
Del Greco added that the low interest rates have also been a positive for commodities, including oil, gold and metals. But late last year the Fed’s forecasts implied four rate rises this year – we are down to one perhaps.
The newly created real estate sector did the best in the Standard & Poor’s 500 index Thursday.
The US dollar fell to its lowest level in 10 days against a basket of major currencies on Thursday, a day after the Federal Reserve cut its longer-term interest rate expectations. It also reduced its longer-run interest rate forecast to 2.9% from 3%. Copper, platinum and palladium each rose roughly 2 percent.
Bond prices rose. The yield on the 10-year Treasury note fell to 1.63 percent.
TAKE A PICTURE: Shares of GoPro, the activewear camera company, rose $1.38, or 9 percent, to $16.35 after the company announced updates to its Hero camera products. Major stock averages closed up about 1 percent for the day.
Brent crude futures (LCOc1) rose 95 cents, or 2 percent, to settle at $46.83 per barrel, while USA crude futures (CLc1) rose $1.29, or 2.9 percent, to settle at $45.34. The dollar edged up to 100.78 yen from 100.51 yen.
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The euro fetched $1.1196, recovering from Wednesday’s three-week low of $1.1123.
