Wall Street hits record highs as Fed begins throttling
US stocks closed their fourth straight day with new record highs, the longest stretch since October 2017.
It came when the Federal Reserve announced the start of its treasury tapering program, cutting government bond purchases by $ 15 billion per month from the current $ 120 billion per month.
The US Federal Reserve also said it would leave its key rate target of 0% to 0.25% unchanged and be “patient” with the rate hike.
The statement also said the bank was able to withdraw stimulus because it “made significant progress” towards its dual goal of maximum employment and average inflation of 2%.
The decision largely met the expectations of economists.
All three US stock market benchmarks closed at record levels – the Dow Jones rose 0.65%, the S&P 500 rose 0.37% and the tech-heavy Nasdaq rose 1.04%.
In company news, Ford monthly vehicle sales fell 4% while EV sales nearly tripled to a monthly record, increasing 195% since last year.
In other markets, the spot iron ore price rose by 3.4% overnight and is now just under $ 100 at $ 99.70 / t.
Oil prices fell 3% ahead of the Opec + session on Thursday US time.
Eurozone share + 0.3% w Lagarde pushes against rate hikes until 2022
US equities + 0.6% .. plus after the Fed confirmed interest rate cut and patiently adjusted interest rates
US 10 years +5 bp to 1.6%
Oil -2.5% to $ 80.9
Gold -1% on $ 1769.8
Iron ore + 3.4% to $ 99.7
ASX futures + 0.5% $ A 0.745 w US $ -0.3%
(Bloomberg chart) pic.twitter.com/aMQsaxmi2L
– Shane Oliver (@ShaneOliverAMP) November 3, 2021
On cryptos, where Bitcoin is consistently trading at $ 62,900 at 8 a.m. AEDT, slightly below the $ 63,000 level yesterday.
The US investment bank giant Goldman Sachs predicts that the price of Ethereum (ETH) could rise to $ 8,000 by the end of 2021 and describes the cryptocurrency as a viable hedge against inflation.
Read all about it here on Stockhead.
ASX 200 opens higher on Thursday
The ASX 200 is likely to open higher this morning with the futures (December contracts) markets gaining 0.50% at 8:30 am AEDT.
Yesterday local stocks closed 0.93% higher, highlighted by another broad rally in the lithium sector as a number of stocks rallied sharply.
The list is available today on the IPO front Volcanic steel (ASX: VSL), a steel trader who has no relationship with the “other” volcano.
In capital letters messages this morning, Post payment (ASX: APT) Shareholders have approved the issuance of Square shares to Afterpay shareholders, effectively clearing the acquisition by Square announced in August.
5 ASX Small Caps You Should See Today
Medlab Clinical (ASX: MDC)
The US Patent Office has granted patent protection to MDC’s Nanocelle. NanoCelle technology creates water-soluble nanoparticles that optimize the delivery of medical sprays to the lungs. It’s ideal for people with difficulty swallowing, fear of needles, or gastrointestinal complications that can limit absorption.
hipages group (ASX: HPG)
hipages has acquired a 25 percent stake in Bricks + Agent for $ 6.25 million. Bricks + Agent is one of the leading real estate management technology platforms in Australia with 360,000 users and a pipeline of nearly 500,000 properties under management. The investment will provide hipages with exposure to the Bricks + Agent user and dealer base as well as the Australian property management market valued at $ 21 billion.
Peppermint Innovation (ASX: PIL)
The Philippines-based fintech company announced the commercial launch of its micro-loan platform bizmoPay. The commercial launch of bizmoPay in phase 1 now enables each of the 56,000 bizmoto agents to access one of the three bizmoPay microcredit products via their mobile bizmoto app.
Dough (ASX: DOU)
Fintech Douugh has partnered with Railsbank to launch its responsible “finance super app” in key global markets, starting in Australia, followed by the UK, Europe and Southeast Asia. The partnership will enable Douough to offer traditional banking services alongside its global partnership with Mastercard.
Minerals 260 (ASX: MI6)
The Company has commenced the first drill program on its 100% owned Moora project in WA. The 3,500-meter diamond drill program is MI6’s first following its spin-off from Liontown Resources and an IPO of $ 30 million in October.
At Stockhead, we say it as it is. While Peppermint Innovation is a stockhead advertiser, it did not sponsor this item.
Get the latest Stockhead news delivered to your inbox for free.
It’s free. Sign out whenever you want.
This might interest you