BCN-06 S&P 500, Nasdaq end at records after Fed speech

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ZCZC

BCN-06

US-STOCKS-MARKETS

S&P 500, Nasdaq end at records after Fed speech

NEW YORK, Aug 25, 2018 (BSS/AFP) – Wall Street stocks jumped to fresh
records on Friday after Federal Reserve Chair Jerome Powell said there was no
sign of an overheating economy and policymakers expected to continue gradual
interest rate increases.

The broad-based S&P 500 gained 0.6 percent to 2,874.69, its first closing
record since January.

The Nasdaq rose 0.9 percent to 7,945.98, also a fresh record, while the Dow
Jones Industrial Average gained 0.5 percent to 25,790.35, about 825 points
below its all-time high.

Powell, in a much-anticipated address at an annual central banker
conference in Wyoming, noted that the US economy remained strong, while
prices were rising at about the Fed’s target pace of two percent.

“We have seen no clear sign of an acceleration above two percent and there
does not seem to be an elevated risk of overheating,” Powell said in prepared
remarks.

“I am confident that the FOMC would resolutely ‘do whatever it takes’
should inflation expectations drift materially up or down or should crisis
again threaten.”

Analysts praised Powell for being upbeat but not so effusive as to raise
worries that the Fed will accelerate its pace of interest rate increases.
Most market watchers expect the central bank to lift rates two more times in
2018.

The Fed seems to be “doing as good a job as they can not to overshoot” the
tightening of monetary policy, said David Levy of Republic Wealth Advisors.

Gainers in the Dow included Caterpillar, DowDuPont, 3M and Visa, all of
which won at least one percent.

Gap sank 8.6 percent after its namesake brand stores suffered a five
percent drop in comparable sales, even as second-quarter profits rose 9.6
percent to $297 million.

Gap reaffirmed its full-year profit forecast but did not boost the
estimate, as some other retailers had this week.

BSS/AFP/HR/0930