Markets rally despite Fed comments
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American indices climbed 1% Wednesday as it took in strike the U.S. Fed’s latest comments about inflation, tapering and interest rates. Jerome Powell didn’t startle markets and more or less repeated his mantra of waiting for full employment before tapering (vaguely “soon”) or raising rates in 2022 (no surprise). American stocks rallied higher before the mid-afternoon announcement, but did not slide after the Fed’s comments.
Boeing soared 4%, American Express rose 2.58% and Ford gained 3%. Many stocks recovered Monday’s losses. All the Dow components were positive, though healthcare was mixed. However, notable losers plunged after missing their latest quarters, namely Fedex, down over 9% (they also weakened their forecast due to labour and supply shortages) and Adobe which slid 3%. Also, Facebook tumbled 4%.
Rising oil prices helped lift the TSX by 0.78%. Staples and telos were flat, but all the major sectors enjoyed gains. WTI and WCS crude both jumped 2% to $72 and $60.50 per barrel respectively. Energy stocks led gains, such as Arc Resources up 2.69%, CNQ at 3.87% and Crescent Point Energy up 3.51%. Baytex soared over 12% as it changed the most hands. Outside energy, Bombardier climbed 3.83%. Some mining stocks showed weakness, such as Franco-Nevada, closing at -2.5%. Finally, Bitcoin leapt 6% to roughly $43,500.
🛫 Boeing +4%
💳 American Express +2.58%
🚚 Ford Motor +3%
📦 FedEx -9%
💾 Adobe Systems -3%
🕵️♂️ Facebook -4%
🛢 Arc Resources Ltd +2.69%
🛢 Canadian Natural Rsrcs +3.87%
🛢 Crescent Point Energy Corp +3.51%
🛢 Baytex Energy Corp +12%
🧬 Bombardier Inc (B) +3.83%
⛏ Franco-Nevada Corp. -2.5%
🅱 The Bitcoin Fund +6%