U.S. stocks erased earlier losses and jumped higher Wednesday after the Federal Reserve said it sees no interest rate hikes through 2023 and that it will let inflation run hotter than usual to ensure a full economic recovery.
 | WED, MAR 17, 2021 | | | | DOW | | NAME | LAST | CHG | %CHG | | AAPL | 124.76 | -0.81 | -0.65% | | INTC | 65.78 | +1.00 | +1.54% | | MSFT | 237.04 | -0.67 | -0.28% | |
| | S&P 500 | | NAME | LAST | CHG | %CHG | | AAPL | 124.76 | -0.81 | -0.65% | | F | 12.69 | +0.20 | +1.60% | | GE | 13.61 | +0.46 | +3.50% | |
| | NASDAQ | | NAME | LAST | CHG | %CHG | | AAPL | 124.76 | -0.81 | -0.65% | | AMD | 82.63 | -0.12 | -0.14% | | TSLA | 701.81 | +24.93 | +3.68% | |
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The Dow Jones Industrial Average rose more than 180 points to close above 33,000 for the first time on Wednesday, boosted by the Federal Reserve's decision to keep interest rates near zero through 2023. The central bank also acknowledged the economy is running hotter than it expected and upped its 2021 gross domestic product growth estimate to 6.5% from 4.2%. The major averages got a boost as Fed Chair Jerome Powell explained that the central bank is not going to act preemptively based on projections and the policymaking body will wait to see real economic data before changing its easy policies. He also said the Fed would need to see a material and sustained move in inflation above the 2% benchmark before considering policy changes.  "We do expect that we'll begin to make faster progress on both labor markets and inflation as the year goes on because of the progress with the vaccines, because of the fiscal support that we're getting," Powell said at a news conference. "We expect that to happen, but we'll have to see it first," he said. The S&P 500 closed up 0.3% and the Nasdaq ended the day 0.4% higher. "It sounds like the perfect scenario for investors and the outlook and you're seeing market response to this very optimistic view," said Michael Arone, chief investment strategist at State Street Global Advisors. "Monetary policy is going to remain largely accommodative almost regardless of what happens with interest rates, inflation and asset prices." The 10-year Treasury yield remained higher after the Fed's statement. Earlier in the session, the benchmark rate jumped to 1.689%, hitting it highest level since late January 2020. |
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