Markets mixed, massive stimulus “should keep equities moving higher”

Markets were mixed on Wednesday.

In the US, the Dow Jones Industrial Average rose 0.2 percent to a record high but the S&P 500 fell less than 0.1 percent.

Elsewhere, the STOXX Europe 600 fell 0.2 percent but Asian markets rose, with the Shanghai Composite up 1.4 percent.

“One of the concerns is that inflation will start to take hold due to so much monetary and fiscal stimulus, which will cause the Treasury and the Fed to intervene,” said Keith Buchanan, senior portfolio manager at Globalt.

However, Federal Reserve Chairman Jerome Powell said on Wednesday that monetary policy needs to stay “patiently accommodative” to support the economy.

“Massive fiscal stimulus and an extremely accommodative Federal Reserve should keep equities moving higher,” said Chris Zaccarelli, chief investment officer for Independent Advisor Alliance.