As of Wednesday’s update, the Federal Reserve left the near zero interest rates policy unchanged. The Fed once again made an emphasis on the fact that the success of the economic recovery will depend greatly on the path of the virus.
The central bank made the following statement: “The ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term.”
Even though the economy was showing signs of improvement after crushing to a halt during the lockdown in the spring, the level of economic activity was still far from ideal, the Fed said.
- S&P 500 closed up 1.24% for its second positive day in three, and its best day since July 14
- S&P is up 5.1% this month, on pace for its 4th straight positive month and its best July since 2010
- S&P is 3.98% below its intraday all-time high of 3,393.52 from Feb. 19
- All 11 sectors were positive on Wednesday, led by energy up 2.1%
- The Nasdaq Composite closed up 1.35% for its second positive day in three
- The Nasdaq Composite is up 4.81% this month, on pace for its 4th straight positive month
- The Dow closed up 0.61% for its second positive day in three
- The Dow is up 2.82% month-to-date on pace for its fourth straight positive month
- The Dow is 10.24% below its intraday all-time high of 29,568.57 from Feb. 12
The COVID-19 outbreak continues to spread across the U.S. According to the Worldometer data tracker, the cumulative number of confirmed U.S. cases reached 4.4 million Tuesday. While daily new cases continue to increase, there has yet to be a corresponding rise in the number of daily deaths, a crucial metric to monitor.
The aggregated total of Covid-19 confirmed cases worldwide already hit 16.6 million since the start of the outbreak, with more than 657,000 virus-related deaths.