Global stocks are rising after the Fed promised to continue to support the recovery


Global stocks rose on Thursday, pushing further into record territory after the U.S. Federal Reserve highlighted its commitment to supporting recovery in the world’s largest economy.

Technology was the leading sector in the S&P 500 benchmark, helping the New York-based blue-chip index close 0.4 percent, adding to the record high set the day before. The Wall Street Nasdaq Composite, full of rising stocks whose estimates were flattered by lower interest rates, climbed 1 percent.

Investors have gone through a rise in new ones U.S. jobless claims which arrived higher than expected, marking the second week of consecutive increases. Weekly data indicated an uneven path to recovery in the labor market after non-agricultural payrolls last week, the U.S. economy was found to have added 916,000 jobs in March, exceeding economists’ expectations.

Charles Hepworth, director of investment at Gam Investments, said markets are less likely to focus on unemployment demands “as vaccine introduction continues at a pace and companies are expected to redirect lost workforce as the economy becomes less constrained by viral restraints.”

Shares of GameStop emerged after U.S. trader Ryan Cohen, his largest shareholder who is popular among the company’s Reddit fans, named him his next chair. Shares jumped at the opening, but then fell 4.3 percent lower in one day.

The rise in technology inventories on Thursday followed a moderate rise in U.S. vaults that raised yields on a ten-year note from a 14-month high of 1.77 percent in March to about 1.62 percent. It has halted strong sales in recent months as investors worried that the Fed’s extremely loose monetary policy, coupled with a fiscal stimulus of $ 1.9 billion, would replenish the economic recovery from the pandemic and free inflation.

A line chart of the index rebased with a display of technology stocks raises the Blue Street scale on Wall Street to a new maximum

Minutes from a central bank policy meeting released on Wednesday showed that Fed policymakers were largely confident in the chances of a continuous jump in inflation and they pledged that the policy would be easy until employment recovered from the pandemic.

“Those big mental adjustments by the market that consider growth prospects and what that would mean for inflation have been fully digested,” said April LaRusse, head of investment experts at Insight Investment.

The European Stoxx 600 index closed 0.6 percent, pushing it above record scheduled for Tuesday that wiped out pandemic losses. The British index FTSE 250 with medium capital reached its own another high this week, climbing 0.4 percent, while his larger counterpart, FTSE 100, ended the session by 0.8 percent.

Gold climbed more than 1 percent, to $ 1,756 per triple ounce, a one-month high, while the U.S. dollar weakened 0.5 percent against a basket of large currencies.

Stock traders were not moved by the news of the extensive reform international corporate taxation proposed by the US administration, which could lead to hefty tax bills for some multinational banks.

Samy Chaar, chief economist at Lombard Odier, said the pressure on earnings from tax increases will be balanced by a high level of demand-boosting incentives. “If what happens on the tax plan results in higher spending, it will ultimately be considered net positive,” he added.

Asian stock markets on Thursday mostly closed in positive territory. Hong Kong’s Hang Seng added 1.2 percent, Australia’s S&P ASX 200 climbed 1 percent and China’s CSI 300 advanced 0.2 percent. Japan’s Topix lost 0.8 percent.

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