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A gauge of global stocks gained on Wednesday and the US. dollar slid after the Federal Reserve repeated its pledge to keep its target interest rate near zero for years to come.
The yield on the benchmark US Treasury note,whose surge has roiled markets in recent weeks, fell back after hitting its highest level since January 2020 ahead of the highly anticipated statement from the central bank.
The Fed projected a rapid jump in US economic growth and inflation this year as the COVID-19 crisis winds down.
On Wall Street, major indexes moved higher, with the S&P 500 posting a record high close, after the Fed statement and newsconference.
Fed Chair Jerome Powell stressed the rosier outlook did not mean the Fed would now remove its support for the economy, with the nation still 9.5 million jobs short of where it was before the emergence of COVID-19 and inflation below the Fed’s target.
The Dow Jones Industrial Average rose 189.42 points,or 0.58%, to 33,015.37, the S&P 500 gained 11.41 points,or 0.29%, to 3,974.12 and the tech-heavy Nasdaq Compositeadded 53.64 points, or 0.4%, to 13,525.20.
“The Fed statement today was more optimistic than some expected, they raised their outlook for both economic growth and the labor market," said David Carter, chief investment officer at Lenox Wealth Advisors in New York. "The market’s view of thestatement is that it was fairly optimistic."
The pan-European STOXX 600 index lost 0.45% and MSCI's gauge of stocks across the globe gained 0.24%, after falling earlier in the session.
The benchmark 10-year Treasury note, last fell 4/32 in price to yield 1.6374%, from 1.623% late on Tuesday. Ittouched 1.689%, its highest level since January 2020, during thesession.
The US dollar fell after the Fed said it does not expect to raise interest rates through all of 2023, contrary to market expectations.
In currencies trading, the dollar index fell 0.518%,with the euro up 0.66% to $1.1979.
Oil slipped for a fourth day, weighed down by expectationsof weaker demand in Europe and by rising US crude inventories.
Brent crude settled down 39 cents, or 0.6%, at $68 abarrel while U.S. West Texas Intermediate (WTI) crude dropped 20 cents, or 0.3%, to end at $64.60.
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