Economy News Shares

Tech stocks scored new highs in a mixed session

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On Thursday, the stock market ended a mixed session, with tech stocks and the broader market making new highs. Investors absorbed the Federal Reserve’s plan to begin reducing its monetary policy support as the economy recovers.

tech stocks scored new highs

Tesla achieved a new record high above $1200 per share. It helped the Nasdaq set a new record, lifted tech stocks despite the Dow dropping. The S&P 500 reached a new high as well.

All of the main benchmarks had made new highs the day before, with confidence fueled by the Fed’s latest monetary policy decision. Furthermore, it also ensured a slew of better-than-expected quarterly corporate earnings results.

The Federal Reserve’s decision on Wednesday went exactly as many investors had predicted, with the central bank publicly announcing that it will begin reducing its post-pandemic asset buying program this month. The move came after members of the Federal Open Market Committee decided that the economy had achieved “substantial further progress” in its recovery, warranting the gradual reduction of policy support.

The Fed announced that it would begin lowering its asset purchases by $15 billion this month, followed by another $15 billion in December. However, the pace of tapering in the future would be determined by “changes in the economic outlook.”

Fed Chair Jerome Powell also maintained his previous position that the end of the tapering process next year does not necessarily mean that interest rate hikes would begin.

“So they added some flexibility,” Nauman explained. “And a lot of it has to do with the inflation uncertainty”.

More Q3 earnings.

Separately, third-quarter earnings season continued Wednesday afternoon, with a procession of names from several industries presenting results.

The stock of Booking Holdings (BKNG) soared after third-quarter earnings showed a pick-up in travel trends. And particularly in Europe, with revenue growing 77 percent year over year, beating Wall Street’s expectations.

Qualcomm (QCOM) also reported better-than-expected quarterly earnings, revenue, and forecast. It indicated that robust demand was keeping the company afloat despite a global chip shortfall and supply chain bottlenecks.

For MetaNews.

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Jonathan Hobbs is an Australian investor and author that trades on a variety of asset classes, including currencies, equities, and commodities. Jonathan’s experience as a macro trader leverages his unique writing style to combine important elements, such as technical analysis and news. The other elements that he brings into his unique writing styles are foundation analysis aimed at rational equilibrium values, evaluating the sizes and motivations of buyers and sellers, as well as identifying the needs of the buyers and sellers in the individual markets. Jonathan is committed to quality writing for new traders as well as veterans.

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