Dow closes at record high as investors remain optimistic on economic growth

SourceBusiness Insider
SectorFinancial Markets
CountryMiddle east

US stocks ended mixed on Wednesday, with the Dow closing at a record high and the S&P 500 and Nasdaq paring back earlier gains as investors digested the economic growth outlook. FOMC minutes from the Federal Reserve's January policy-setting meeting were released Tuesday afternoon. The text reiterated to investors that accommodative monetary policy will remain in place for the foreseeable future. Economists from Jefferies said the more interesting part of the minutes was the discussion of risks surrounding the medium-term outlook for the economy.  "The downside risks mentioned in the minutes are all related to the pandemic: new strains, slow vaccine distribution, and public resistance to the vaccine. It's probably fair to say that the probabilities around these risks have not changed materially since the January FOMC meeting," said Jefferies economists Thomas Simmons and Aneta Markowska. "However, upside risks are clearly evolving.

The Committee noted several reasons the economy could surprise on the upside, including (1) a more expansionary fiscal policy, (2) households...read more...