You are here: Home - Investing - Experienced Investor - News -

Dovish Fed minutes prompt biggest gains of 2014 for US stocks

0
Written by:
09/10/2014
US stocks posted their largest one-day gain this year as the latest meeting minutes from the Federal Reserve suggest it may adopt a more cautious stance on hiking interest rates.

The minutes from the Fed’s policy meeting in September revealed a preoccupation with lessening domestic inflation pressures and the stronger dollar rather than a path to higher rates.

Committee members discussed how a strong dollar could hurt international competitiveness and could also lessen inflation in the US, as imported goods become cheaper. 

As a result, the Dow Jones index rose 1.6 per cent to 1,6994, its largest gain since last December, while the S&P 500 jumped 1.7 per cent to 1,969, its strongest rise in nearly 12 months.

The moves reversed the hefty declines prompted by IMF global growth downgrades seen on Tuesday.

In the currency markets, the US dollar fell to a two-week low against the euro, while the price of gold rising to $1,215.

Benchmark treasury yields, already at their lowest level of the year, dropped further on the news: the yield on 10-year notes fell to 2.331 per cent, the lowest closing level since June 2013. 

Investors had expected talk of an upcoming interest rate hike to dominate the meeting. Most forecasters continue to expect the first hike to occur at the end of H1 2015.

Related Posts

Tag Box

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Autumn Statement: Everything you need to know at a glance

Yesterday Chancellor Jeremy Hunt made his first fiscal statement in the role, outlining a range of tax measure...

End of Help to Buy: 10 alternatives for first-time buyers

The deadline for Help to Buy Equity Loan applications passed on 31 October. If you’re a first-time buyer who...

Moving to an energy prepayment meter: Everything you need to know

As households struggle with the soaring cost of energy, tens of thousands of billpayers are expected to move o...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

DIY investors: 10 common mistakes to avoid

For those without the help and experience of an adviser, here are 10 common DIY investor mistakes to avoid.

Mortgage down-valuations: Tips to avoid pulling out of a house sale

Down-valuations are on the rise. So, what does it mean for home buyers, and what can you do?

Five tips for surviving a bear market mauling

The S&P 500 has slipped into bear market territory and for UK investors, the FTSE 250 is also on the edge. Her...

Money Tips of the Week