? U.S. stock indexes are showing strong gains Thursday, following stocks of companies most sensitive to the state of the economy. Investors generally forgot about fears around the Fed’s stimulus rollback, and improved forecasts for companies such as Accenture and Salesforce added to the market’s optimism.
? The Fed said at the end of its meeting the day before that it may start reducing its monthly bond buying in November and signaled that a key rate hike may come sooner than expected.
? The Fed also raised its inflation forecast for the end of 2021 to 4.2%, double its target of 2.0%. At the same time, the U.S. central bank has not lost hope that the economy will return to normal next year.
? Wall Street’s growth leader on Thursday was the financial sector, which jumped by 1.7% due to expectations of an increase in lending rates.
? “Fed policy is still accommodative, and it’s reasonable on the Fed’s part to want a return to normal if the economy is really as strong as (recent) data show,” said Mac Levergart of E*TRADE Financial.
? “Given the recent volatility, it’s likely that investors view the forecasts of stimulus rollbacks and possible rate hikes in 2022 as a sign of confidence in the ongoing economic recovery,” he added.
? The Dow Jones Index was up 1.46% to 34,757.61 points by 6:12 p.m. MSK, the S&P 500 Index was up 1.27% to 4,451.68 points and the Nasdaq was up 0.93% to 15,034.88 points.
? The Dow and S&P 500 are showing their best daily performance in two months.
? Shares of Salseforce.com Inc jumped 4.8% after the IT company improved its annual earnings forecast.
? Another company in the sector, Accenture, also raised its first-quarter forecast, and its stock is up nearly 1.5%.