Stocks Rally, Dollar Falls on Dovish Fed Remarks: Markets Wrap
- Fed holds zero rates, Powell warns virus spike hitting economy
- Traders also sift through a batch of corporate earnings
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U.S. stocks advanced with Treasuries, while the dollar retreated after the Federal Reserve signaled continued stimulus to prop up the world’s largest economy.
The S&P 500 extended its July rally as the Fed kept rates near zero in a widely anticipated decision, pledging to use all of its tools to support a recovery from the coronavirus pandemic. Chairman Jerome Powell said there are signs the increase in infections is starting to weigh on activity while noting that the path forward for the economy is “extraordinarily uncertain.” Investors also sifted through a batch of corporate earnings, with Qualcomm Inc. surging in extended trading on a strong sales forecast.