ROUNDUP / New York Equities Conclusion: Recovery – Fed meets market expectations

rose 0.99 percent to 15,176.51 points.

The US Federal Reserve is sticking to its very loose monetary policy for the time being, but is heading, as expected, on a less generous line. The central bank signaled that purchases of securities to support the economy could soon be scaled back.

“If progress continues broadly as expected, the committee believes that a slowdown in bond purchases may soon be justified,” said the Federal Reserve. The economy had moved towards the goals of the central bank. Inflation has been high recently while the economy and labor market recovered from the corona pandemic.

The Fed’s statements were well received on the stock exchanges, wrote market observer Thomas Altmann from asset manager QC Partners. They met all expectations and did not contain any negative surprises.

Fedex stocks fell among the individual stocks at the S&P 500 end by more than nine percent. The parcel service had already lowered its earnings target for the current financial year after the first three months. The difficult conditions are likely to have an impact for some time, it said. In addition, in the first quarter that ended at the end of August, Fedex missed the market’s profit expectations by a massive margin.

By contrast, General Mills’ stocks rose in the S&P 500 by a good three percent. As figures from the food company for the first quarter of the fiscal year showed, both sales and earnings were above expectations.

Looking at technology stocks, Facebook’s shares fell by around four percent. The online network continues to struggle to adapt its advertising business to the increased privacy protection on the iPhone. The company was now trying to reassure its advertisers. The success of their ad campaigns has not sagged as much as incorrect Facebook data would suggest, it said in a blog entry.

The papers from Adobe Systems lost a good three percent. The software company had failed to meet the high market expectations with its business figures.

Given the good mood on Wall Street, US bonds came under slight pressure. The futures contract for ten-year papers (T-Note-Future) fell by 0.04 percent to 133.16 points. The return on ten-year paper was 1.31 percent.

The US dollar benefited from the prospect of a less generous monetary policy in the US. In return, the euro came off negative pressure. The common currency cost 1.1692 dollars at the close of the market. The European Central Bank had previously set the reference rate at 1.1729 (Tuesday: 1.1738) dollars. The dollar cost 0.8526 (0.8519) euros./la/jha/

By Lutz Alexander, dpa-AFX

Source: dpa-AFX

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