Wednesday, 24 February 2021

Markets mixed, Powell eases inflation concerns

Markets were mixed on Tuesday.

The S&P 500 reversed a 1.8 percent loss during the session to end 0.1 percent higher.

Elsewhere, the STOXX Europe 600 fell 0.4 percent and the Shanghai Composite fell 0.2 percent.

US stocks turned around from early sharp losses after Federal Reserve Chair Jerome Powell said in his testimony to Congress that inflation is still “soft” and the economic outlook is still “highly uncertain”, easing concerns of a policy change by the central bank.

“The Fed is focused on employment and seems very willing to absorb higher inflation and excesses in financial market that brings financial instability in hopes of getting there,” said Peter Boockvar, chief investment officer at Bleakley Advisory Group.

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