ASX must rise; The Fed is starting to decline by $ US15b a month

Shares rose on Wall Street on Wednesday (US time) as investors looked at yet another large group of earnings reports from US companies, and the Federal Reserve announced it would start downsizing.

The Fed said it would begin settling its monthly asset purchases later this month at a rate of $ 15 billion ($ 20 billion) a month, starting the withdrawal of last year’s emergency pandemic support, while expressing less assurance that the jump in inflation will show. temporary.

Wall Street is lower in mid-afternoon trading.

Wall Street is lower in mid-afternoon trading.Credit:Bloomberg

In late trading, the S&P 500 is 0.5 percent higher, the Dow Jones has added 0.2 percent and the Nasdaq has risen 0.9 percent. All three set their latest closing record a day earlier. The Australian stock market is poised to open higher, with futures at 6.30am AEDT pointing to a gain of 25 points, or 0.3 per cent, at the opening.

Smaller corporate stocks outperformed the broader market in a sign that investors felt confident of economic growth. Russell 2000 rose 1.9 percent. It also set a record on Tuesday.

Industrial companies had some of the biggest losses. Agricultural equipment manufacturer Deere fell 5.1 percent. Workers at the company on Tuesday rejected a contract offer that would have given them 10 percent pay rises, and decided to remain on strike in hopes of securing a better deal.

Healthcare and technology stocks also fell. US crude oil prices fell 3.2 percent, but energy stocks were mixed.

Bond yields rose. The yield on the 10-year government bond rose to 1.57 percent from 1.54 percent late Tuesday.

Investors were handed a mixed bag of company reports. Activision Blizzard fell 14.2 percent after the maker of video games as World of Warcraft gave investors a disappointing earnings forecast. Zillow Group fell 27 percent after the real estate website operator reported disappointing financial results, saying it was closing its home-flipping business.

CVS Health rose 5.1 percent after the pharmacy chain and pharmacy benefits raised its earnings forecast for the year after a strong third quarter. Mondelez International rose 1.4 percent after the maker of Oreo cookies reported solid third-quarter financial results.

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