Stocks Hit Record, Bond Curve Steepens After Fed: Markets Wrap
- Powell says Fed patient on rate hikes, but will act if needed
- Longer-end rates rise relative to short end; hike bets steady
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Stocks climbed to a record after the Federal Reserve signaled monetary policy will remain accommodative even as the central bank starts reducing its massive bond-buying program this month.
In a feat not seen since January 2018, the S&P 500, the Dow Jones Industrial Average, the Nasdaq 100 and the Russell 2000 rallied to their all-time highs in sync for a second straight day. The Treasury curve steepened after Fed Chair Jerome Powell sought to stress that tapering doesn’t mean rate hikes are coming soon. He said officials can be patient on tightening, but won’t flinch from action if warranted by inflation.