Breaking News

You are here » Indian-Commodity  :  International & World Stock  :  US markets closed mostly higher; Nasdaq report minor loss

21-Sep2017

US markets closed mostly higher; Nasdaq report minor loss

The US markets closed mostly higher on Wednesday, with the Dow industrials and the S&P 500 carving out fresh all-time highs, as the Federal Reserve announced that, for the first time in nine years, it would start reducing the size of its $4.5 trillion asset portfolio commencing in October. The US central bank kept interest rates unchanged, as widely expected, but said it would start to shrink its balance sheet by $10 billion a month. The Fed also signaled a December rate increase remains on the table as the central bank embarks on an unprecedented unwind of crisis-era asset purchases that had helped to buoy markets over the past decade. The Fed committed to reducing the bonds they own at a pace of $10 billion a month and increasing that pace by $10 billion every three months to a maximum pace of $50 billion a month, or $600 billion a year. The Fed kept its targeted federal-funds rate between 1% to 1.25%, and said the devastation caused by Hurricanes Harvey and Irma isn't likely to materially alter the course of the economy over the medium term, underscoring the central bank's determination to normalize interest-rate policy. The Fed's interest-rate projections, known as the so-called dot plot, implies a rate hike in December and three more in 2018. Yellen emphasized, during the news conference, that the central bank was monitoring stubbornly low inflation closely, with an eye to seeing it return to its 2% annual target. Inflation has been kept in check, despite an otherwise healthy labor market, which should theoretically lift prices and inflation. Several central-bank officials already wanted to start winding down the Fed's portfolio of government securities in July, but the majority wanted to hold until a later date.

On the economy front, existing-home sales in August dropped for the fourth time in five months as real-estate agents continue to blame a lack of available homes to buy. The National Association of Realtors said existing-home sales fell 1.7% to a seasonally adjusted rate of 5.35 million, the worst level in 12 months. Total housing inventory at the end of August declined 2.1% to 1.88 million existing homes available for sale, and is now 6.5% lower than a year ago. That limited inventory has helped stoke prices - the median existing-home price in August was $253,500, up 5.6%. Hurricane Harvey did make an impact, in Houston in particular, as the South's sales fell by 5.7%. Sales in the Northeast and the Midwest rose, while those in the West fell. Yun said nearly all of the lost activity from the hurricanes that struck Texas, Louisiana and Florida will likely show up next year.

The Dow Jones Industrial Average added 41.79 points or 0.19 percent to 22,412.59, the S&P 500 edged higher by 1.59 points or 0.06 percent to 2,508.24, while the Nasdaq lost 5.28 points or 0.08 percent to 6,456.04.





Related News

View all news

US markets end lower on lingering trade concerns

The US markets ended in red terrain on Monday giving back ground after moving notably higher last week. Sentiments remain dampened throughout the day on lingering trade concerns, with stocks seeing further......

US markets end mostly higher with modest gains on Friday

The US markets ended mostly higher with marginal gains on Friday. Traders remained cautious following a report that President Donald Trump still wants to impose tariffs on China despite recent suggestions......

US markets end higher on Thursday

The US markets ended higher on Thursday with gains of over half a percent following reports the US is proposing a new round of trade talks with China in the near future. US Treasury Secretary Steven Mnuchin......

Top News

View all news

GMR Infrastructure plans to develop logistics parks near Hyderabad airport: Report

GMR Infrastructure is reportedly planning to develop logistics parks, retail hub and commercial centre on land which it owns and operates by the company, around the Hyderabad international airport. The......

ITDC inks MoU with Moroccan Agency for Tourism Development: Report

India Tourism Development Corporation (ITDC) has reportedly inked Memorandum of Understanding (MoU) with Moroccan Agency for Tourism Development. This collaboration will strengthen and develop well-established......

Jamna Auto signs agreement with TBL

Jamna Auto Industries has signed an agreement with UK-based Tinsley Bridge (TBL) for technology transfer. The company also plans to introduce two new products stabilizer bars and U-bolts as part of the......