By Yasin Ebrahim
Investing.com – The S&P 500 hit a record high for the day on Wednesday as the Federal Reserve held rates steady and signaled continued support for the recovery.
The increase rose 0.3% to hit an intraday record of 4,201.85. It fell 0.16%, or 53 points, and it rose 0.3%.
The Fed left its key interest rate unchanged, saying that while the pace of recovery has improved, there is still a long way to go before the economy meets its inflation and labor market targets.
"Given advances in vaccination and strong political support, activity and employment indicators have strengthened. Sectors hardest hit by the pandemic remain weak but have improved," a Fed statement said.
The central bank's unchanged decision weighed on bond yields and helped tech reduce some of its losses after mixed corporate earnings.
Alphabet (NASDAQ 🙂 reported first quarter results that outperformed analysts and announced a $ 50 billion share buyback, increasing shares by more than 4%.
Microsoft (NASDAQ 🙂 fell more than 2% despite the tech giant reporting better-than-expected results, backed by the strength of its cloud business. The results were well received on Wall Street, with several analysts raising their price targets for the stock.
"We are maintaining our outperformance and increasing our target price to $ 310 versus $ 300, reflecting cloud levels seen for the quarter," Wedbush said in a note.
Chip stocks were down nearly 1% as Advanced Micro Devices (NASDAQ 🙂 gave up its intraday gains despite posting its first quarter results.
Spotify technology (NYSE 🙂 slumped 11% despite quarterly results above consensus estimates and lower-than-expected loss forecast for the second quarter.
Energy stocks, meanwhile, were boosted by a surge in oil prices after data showing an unexpectedly small spike in weekly stocks eased investor worries that rising global infections could dampen demand.
up 90,000 barrels in the past week, compared to analysts' expectations for construction of 659,000 barrels.
Boeing Co. (NYSE 🙂 was down 2.5% on the Dow as the aircraft maker's unexpectedly small loss did not offset concerns that aviation demand would continue to be challenged amid the ongoing impact of the pandemic.
Other news is that President Biden is expected to propose his $ 1.8 trillion American Families Plan to Congress later today. Biden plans to fund the package, which includes funding additional childcare and education expenses, by nearly doubling capital gains tax for Americans who earn more than $ 1 million a year.
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