Tue, 21 Sep 2010 22:27:00 +0200

Wall Street gets a modest bounce on FOMC

FXstreet.com (Barcelona) - Most US stocks received a moderate rise after the Fed announced it is ready to accommodate further quantitative easing to bolster the economy if needed. Measure to expand the balance sheet are still at the expense of getting more confirmation on the sluggish outlook from the jobs market, while worries towards averting deflationary threats also remain at the top of the agenda.

The US dollar got beaten heavily on the news, on a post-FOMC analysis, Kathy Lien, Director of Currency Research at GFT said: “The Federal Reserve’s concern about deflation and their willingness to further ease monetary policy drove the U.S. dollar sharply lower against all of the major currencies”. Meanwhile, US Gold futures flew higher again, setting its new record high at $1,290.00.

The Dow Jones Industrial Average benefited from the announcement, moving away from its intra-day lows to end the day just over neutral area, after a 0.06% rise. The Nasdaq Composite gave up a small portions of its prior day's strong climb, and retreated 0.28%,while the S&P 500 fell by 0.26%. Financials, yesterday's best performers, eased down while telecom and industrial moved higher.