Major averages finish the week higher after Powell prepares markets for Fed’s bond taper this year
Stocks rose on Friday heading for a winning week as Federal Reserve Chairman Jerome Powell prepared the markets for the central bank to pull back on some of its monetary stimulus, saying it’s likely to start tapering its $120 billion in monthly bond purchases this year.
The Dow Jones Industrial Average gained 242.68 points, or 0.6%, to 35,455.80. The S&P 500 rose 0.8% to hit a new high and closed at 4,509.37. The Nasdaq Composite added 1.2%, also hitting a new record during the session, closing at 15,129.50.
The three major stock averages closed the week in the green. The Dow finished up 0.9%, while the S&P 500 added 1.5% and the Nasdaq Composite gained 2.8%.
Based on statements from other central bank officials, a tapering announcement could come as soon as the Fed’s Sept. 21-22 meeting.
The indexes are on track to end the month higher. The Dow is up 1.4% in August. The S&P 500 is 2.6% higher, and the Nasdaq Composite is up 3.1% this month.
Reference: CNBC
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