Stocks Whipsaw, Dollar Drops on Powell’s Dour View: Markets Wrap
- Fed puts floor under bond buying, sees zero rates through 2022
- There’s risk of longer-lasting damage to the economy: Powell
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U.S. stocks whipsawed, the dollar fell and Treasuries rallied as investors assessed the Federal Reserve’s views on the economy.
In a very volatile session, the S&P 500 closed lower as Chairman Jerome Powell suggested the pandemic could inflict longer-lasting damage on the economy even as the Fed signaled it would keep rates near zero possibly for years to come. The central bank also said it will at least maintain the current rate of bond purchases. Treasury 10-year yields sank to as low as 0.72%, while the dollar extended its June slide to 2.5%. The Nasdaq 100 climbed to a record high as Tesla Inc. topped $1,000.