S&P 500 and Nasdaq close at all-time highs in blended trading

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Shares ended mixed on Thursday, with the Nasdaq and S&P 500 closing at record highs, as investors reacted to an accommodative policy statement from the Federal Reserve following its widely reported cut decision.

The Dow Jones Industrial Average cut earlier losses to end down 33 points, or 0.09%, at 36,124, as Goldman Sachs (SG) – Get the report from Goldman Sachs Group, Inc. (GS) and JPMorgan (JPM) – Get the JPMorgan Chase & Co. (JPM) report lost ground.

The S&P 500 ended up 0.42% and the Nasdaq was up 0.81%. Both indices also hit intraday highs.

The Federal Reserve said on Wednesday it would begin to slow the pace of its $ 120 billion monthly bond purchases later this month, but made no mention of linking the so-called taper to future rate hikes.

The Fed will decline $ 15 billion from the monthly pace, with cuts in treasury bond purchases of $ 10 billion and a $ 5 billion reduction in mortgage-backed securities purchases.

“Ideally, we would see further development in the labor market in a context where there is not another peak in Covid,” President Jerome Powell told reporters in Washington. “We don’t think there is yet time to raise interest rates.”

Louis Navellier, chief investment officer at Navellier & Associates, said: “It is very evident to me that Fed Chairman Jerome Powell wants his post to be renewed by Chairman Biden and will work hard not to tip over. the boat by maintaining a super accommodating monetary policy.

Weekly jobless claims totaled 269,000 last week, the lowest total in the pandemic era and better than the estimate of 275,000.

“So far this week we’ve received some pretty good news on the labor market front – with private payrolls rising and unemployment claims falling for another week,” said Mike Loewengart, Managing Director of Investment Strategy at E-Trade.

“And with the Fed starting to take a step back from its accommodative stance, all in all, this could be further evidence of solid gains in terms of our economic recovery.”

Powell said he wanted to see more robust progress in employment, Loewengart said, “so all eyes will be on full employment tomorrow and how that translates into Fed actions going forward.”

In company news, Qualcomm (QCOM) – Get the QUALCOMM Incorporated report shares jumped 13% after chipmaker, which is a key part of Apple (AAPL) – Get the Apple Inc. (AAPL) report supplier, lambasted fourth-quarter earnings estimates and released a strong forecast for the holiday quarter.

Moderna (MRNA) – Get the report from Moderna, Inc. fell 18% after posting weaker-than-expected profits in the third quarter and slashing its annual forecast for Covid vaccine sales.

Nicolas (NKLA) – Get the Nikola Corp report. Shares ended up 21% after the electric truck maker said it could settle fraud charges collected by the Securities and Exchange Commission for around $ 125 million.


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