Stocks moved broadly higher in afternoon trading Wednesday after the
The S&P 500 was 0.6% higher after having been up just 0.2% before the
The central bank predicted that the nation's GDP would fall by 3.7% this year compared to a June forecast of a 6.5% drop.
Banks, industrial stocks and energy companies led the way higher, offsetting losses in technology and communications stocks. Smaller stocks were climbing more than the rest of the market, and the Russell 2000 index of small-caps was up 2.1%.
One of the primary reasons
“Don't fear the
Investors may be relying too much on the Fed to come to the market's rescue if it stumbles again though, Zigmont said.
“If the Fed says we won’t ruin the party that's not same as saying they’re going to juice the party up even more,” Zigmont said.
FedEx jumped 6.8% for one of the biggest gains in the S&P 500 after reporting stronger profit growth for the latest quarter than analysts expected. The boom in online shopping caused by the coronavirus pandemic has helped its revenue climb. The company said that the growth it expected to see over the next three to five years has happened in just three to five months.
The gains were so powerful and consistent for these superstar stocks that critics warned they had become too expensive, and they tumbled sharply after carrying the S&P 500 to a record on
The economy has made some improvements since the worst of the lockdowns in the spring, but the budding recovery has been fitful. Investors say the economy and markets still crucially need all the support they can get from the
“If coronavirus disappears then we’re dealing with normal risks,” Zigmont said. “If it resurges, all the usual things that investors take into account, all the projections for the next two years go out the window.”
Federal unemployment benefits and other Congressional aid for the economy approved earlier this year have expired, but partisan disagreements on
A report on Wednesday showed that
Earlier, a separate report from the
Stock markets around the world were mostly subdued.
AP Business Writer