Dow closes at record high after Powell backs continued low interest rates – Business Insider

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Federal Reserve Board Chairman Jerome Powell testifies during a hearing on “The Semiannual Monetary Policy Report to the Congress,” in front of the Senate Banking, Housing and Urban Affairs Committee in the Dirksen Senate Office Building on February 12, 2020 in Washington, DC.

  • The Dow closed at a record high on Wednesday after Federal Reserve Chairman Jerome Powell expressed his support for continued low interest rates.
  • In a speech to the Economic Club of New York, Powell said addressing the current economic environment will require “patiently accommodative monetary policy.”
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The Dow Jones Industrial Average closed at a record high on Wednesday as Federal Reserve Chairman Jerome Powell delivered a speech to the Economic Club of New York. The S&P 500 and Nasdaq Composite both closed lower. 

Powell stressed that accommodative monetary policy is still necessary to combat the economic uncertainty caused by the COVID-19 pandemic.

“Fully realizing the benefits of a strong labor market will take continued support from both near-term policy and longer-run investments,” Powell said.

Powell sees the actual US unemployment rate closer to 10% due to the recent reduction in the labor force, which is nearly double the official rate of 6.3%.

The Dow traded higher, while the S&P 500 and Nasdaq 100 were slightly lower.

Here’s where US indexes stood at the 4:00 p.m. ET close on Wednesday:

Read More: GOLDMAN SACHS: Buy these 26 ‘best of both worlds’ stocks set to soar with economic recovery even if interest rates stay low

Another surge in dogecoin occured on Wednesday after Elon Musk once again tweeted about it, saying that he bought some for his son. 

Pacific Biosciences soared as much as 25% after Softbank said it invested $900 million in the diagnostics company. 

Better than expected corporate earnings from Lyft and Twitter sparked a 11% and 16% surge in their stock prices, respectively. 

The SPAC craze showed no sign of slowing down on Wednesday, with former NFL player Colin Kaepernick launching his own SPAC, seeking to raise $250 million to fund a $1 billion acquisition of a firm with a social purpose. 

Electric truck developer Rivian, a rival to Tesla, is reportedly seeking an IPO this year, which could give it a valuation of at least $50 billion.

Cannabis stocks continued their surge higher on Wednesday as hopes for US legalization under a Biden administration continued. 

Oil prices rose. West Texas Intermediate crude jumped 0.27%, to $58.52 per barrel. Brent crude, oil’s international benchmark, gained 0.26%, to $61.25 per barrel, at intraday highs.

Gold rose 0.26%, to $1,842.30 per ounce.

Read More: Credit Suisse says to buy these 16 ‘highest-conviction’ stock picks that are set to outperform despite the market’s contrarian view

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