S&P, Dow advance on Fed’s inflation scheme, vaccine hopes
The S&P 500 and the Dow were seen upbeat, while the Nasdaq dropped on Thursday. This followed after investors’ sentiment was fuelled by the U.S. Federal Reserve’s new inflation scheme and its move to nurse employment in the United States. Meanwhile, encouraging medical findings to combat the coronavirus also supported the indexes.
The S&P 500 recorded five consecutive closing highs, while the Dow placed 3.6% lower than its record peak seen in February. Both indexes were greatly lifted by the financial sector. Meanwhile, Treasury yields advanced on the U.S. Federal Reserve’s newest inflation strategy, sending interest rate-sensitive financials up.
Stocks ran turbulently after House of Representatives Speaker Nancy Pelosi said that Democrats and Republicans remain far apart over the next stimulus bill. Moreover, declines in market-leading momentum stocks restricted the performance of the S&P 500 and dragged the Nasdaq down.