The S&P 500 is rising, while Powell says we have a “basis to cover” before the Fed changes its easy policy

The S&P 500 rose higher on Wednesday after Federal Reserve Chairman Jerome Powell said significant economic improvement was needed for the central bank to start calling for its easy money policies again.

The broad reference value for equity erased earlier losses and increased by 0.2%. The technically heavy Nasdaq Composite climbed 0.8%. The Dow Jones industry average fell 15 points. The main averages pulled from their records in the previous session, broke a five-day winning streak.

Federal Open Market Committee kept interest rates in the target range close to zero, reiterating its view that the economy continues to “strengthen” despite the spread of the delta coronavirus strain. Powell stressed that the economy is far from achieving the Fed’s double mandates on stable prices and maximum employment.

“We need to cover something on the labor market side,” Powel told a news conference. “I think we are on the verge of significant further progress towards a maximum employment target. I would like to see some strong job numbers.”

The central bank began buying at least $ 120 billion a month in bonds in December, until “significant further progress” was made in employment and inflation.

“Since then, the economy has progressed towards these goals, and the Committee will continue to assess progress at future meetings,” the statement said after the meeting.

Boeing shares rose about 5% after the manufacturer expressed its first profit from the third quarter of 2019, thanks to a jump in aircraft deliveries. Pfizer shares rose about 2% after the company reported higher-than-expected earnings and increased its Covid vaccine sales forecast for 2021.

Investors have also digested a multitude of quarterly results from megacap technology names. Google Parent Alphabet jumped more than 4% after the technology giant announced quarterly results, registering a 69% jump in advertising revenue.

Apple shares fell 0.4% after CEO Tim Cook warned that silicon “supply restrictions” would affect sales of the iPhone as well as the iPad. The company is beat upper and lower line estimates and said iPhone sales were up 50% from last year.

Microsoft its shares rose 1% after reporting that earnings had been beaten despite declining revenue from its Windows division.

The busiest earnings week continues on Wednesday with Qualcomm,, Facebook,, Ford i PayPal among the names on deck. Of the S&P 500 companies that have reported quarterly results so far, 89% exceeded earnings estimates, while 86% exceeded revenue expectations, according to Refinitive.

Major averages are still on track to finish a month higher. S&P rose 2.4% in July, while the Nasdaq Composite and Dow rose 1.1% and 1.6%, respectively.