Stocks rose to new records on Wednesday after the Federal Reserve made its long-anticipated announcement to slow the monthly bond purchases implemented during the pandemic.
The Dow Jones Industrial Average recovered 104.95 points to 36,157.58, and closed at a new record.
The S&P 500 regained 29.92 points to add to Tuesday’s all-time high 4,660.57
The NASDAQ Composite popped 151.98 points, or 1%, to 15,811.58, also topping the previous record.
This is the fourth session in a row that all three major averages closed at new highs.
The Fed announced Wednesday that it will start to taper its bond-buying program that was put in place to prop up the economy during the pandemic.
The central bank also subtly reframed its stance on inflation, acknowledging that price increases have been more rapid and persistent than central bankers had expected. However, the Fed’s statement still characterized the rising prices as “transitory,” which could push the timeline for interest rates hikes further into the future.
A slew of corporate earnings and announcements jolted certain equities on Wednesday. Lyft jumped 8.2% on strong third-quarter results and CVS Health rose 5.7% on better-than-expected earnings.
Zillow fell 24.8% after announcing it will close its home buying and flipping business. Shares of Bed Bath & Beyond rose on a partnership announcement with Kroger but the 15.2% surge that followed was likely fueled by a short squeeze.
Activision shares tumbled, falling about 14.1% after it said the launch of two games would be delayed. The company also issued a weaker holiday outlook though it did beat profit estimates for the quarter.
Wednesday’s ADP report showed that private job creation rose in October, thanks to a burst in hiring in the hospitality sector. Companies added 571,000 for the month, beating the 395,000 Dow Jones estimate and just ahead of September’s downwardly revised 523,000. It was the best month for jobs since June.
Prices for 10-year Treasurys lost strength, raising yields to 1.61% from Tuesday’s 1.55%. Treasury prices and yields move in opposite directions.
Oil prices faded $4.05 to $79.86 U.S. a barrel.
Gold prices regained $16.60 to $1,772.90 U.S. an ounce.