Data provided by McGregor BFA
All data is delayed
Loading...
See More

Bernanke remarks hurt dollar, boost stocks

Apr 27 2011 22:11 AFP

Related Articles

Wall St hits levels last seen in 2008

Euro rally pushes rand to 2-week high

US consumer confidence improves slightly

Dis-credit rating

Emerging markets hold breath for Fed

BP sues over US oil spill

 
New York - US stocks pushed higher but the dollar dropped on Wednesday after the Federal Reserve left interest rates unchanged and chairperson Ben Bernanke called debt the country's leading long-term problem.

The tech-rich Nasdaq added 22.34 points (0.78%) at 2 869.88, the highest close since December 2000, when it was plummeting as the dot-com bubble famously burst, plunging the country into recession.

Riding news that the Fed would not raise ultra-low interest rates, the Dow Jones Industrial Average also surged, adding 95.59 points (0.76% ) to finish at 12 690.96.

The broad-market S&P 500 advanced 8.42 points (0.62%) to 1 355.66.

The blue-chip Dow and the S&P 500 finished at their highest levels since 2008, in May and June, respectively.

The Fed left the door open for more economic stimulus while saying its current $600bn program to inject liquidity into the economy would be allowed to run its forecast course through June.

The dollar fell sharply against the euro, however, as Bernanke reiterated the economy's weaknesses and need for low rates despite rising inflation, in a first-ever press conference following a meeting of the central bank's policy-making panel.

By the end of Bernanke's one-hour meeting with journalists, the euro was at $1.475, compared with the average level of about $1.467 during the morning and $1.464 late Tuesday.

Bernanke told reporters that the country face a huge problem in its massive debt load.

"It's the most important economic problem, at least in the longer term, that the United States faces," he said.

"US stocks moved solidly higher on the day, after receiving a nice afternoon jolt from the comments of Fed chairman Ben Bernanke in the inaugural post-policy meeting news conference," Charles Schwab analysts said in a client note.

Helping to underpin the market, on the ninth day of a solid rally, was a report that durable goods orders had risen 2.5 percent in March, a sign that US industry continues to expand and companies are investing in and upgrading equipment.

The bond market slumped. The yield on the 10-year Treasury rose to 3.37% from 3.32% late on Tuesday.

Bond yields and prices move in opposite directions.

ben bernanke  |  us economy
NEXT ON FIN24X

 
 
 

Read Fin24’s Comments Policy

24.com publishes all comments posted on articles provided that they adhere to our Comments Policy. Should you wish to report a comment for editorial review, please do so by clicking the 'Report Comment' button to the right of each comment.

Comment on this story
3 comments
Add your comment
Comment 0 characters remaining
 

Company Snapshot

We're Talking About: Small Business

Standard Bank is looking for 12 entrepreneurs to participate in a 10-part TV series. They could win a R1m investment into their dream.
 

Money Clinic

Money Clinic
Do you have a question about your finances? We'll get an expert opinion.
Click here...
Loading...