Stocks closer higher after updates from Fed, Powell
The Dow closed higher by more than 300 points in a broadly positive day for the market. The S&P 500 and Nasdaq Composite each rose roughly 1%.
The 10-year Treasury yield drifted lower after making some volatile moves during Powell’s press conference. The benchmark yield was trading near 1.307%, down 1.7 basis points for the day, at 4 p.m. ET. The 30-year yield saw an even larger decline, but short-term rates were higher.
Medium and long-term path for Fed policy unclear, strategist says
Lawrence Gillum, fixed income strategist for LPL Financial, said that the medium and long-term policy path for the Fed remains unclear even as the central bank appears to be getting closer to tapering and rate hikes.
“We continue to think the Fed will announce plans to taper in November with the actual reduction in bond purchases taking place…