Thursday, September 21, 2017
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[Most Recent Quotes from www.kitco.com]
[Most Recent Quotes from www.kitco.com]



Market Digest Online THURSDAY, SEPTEMBER 21, 2017: The S&P 500 and Dow Jones industrial average closed at record highs and bank stocks surged after the Federal Reserve indicated another rate hike this year was possible and that it would begin the unwinding of its balance sheet next month. The statement was a little more hawkish than traders anticipated, causing the 10-year Treasury yield to jump higher and in turn, boosting financial shares.

The Dow Jones industrial average rose about 40 points with Boeing and McDonald's contributing the most to the gains. The S&P 500 closed about 0.06 percent higher, with energy and industrials contributing the most to the losses. Industrials and materials shares both hit intraday all-time highs in today's session.

Following the Fed's announcement, shares of major banks including PNC Financial Services, Bank of America and Citi were all up more than 1 percent. The Nasdaq composite fell about 0.08 percent with Apple and Microsoft both lower.

U.S. central bank announced it will begin in October rolling off its $4.5 trillion balance sheet, most of which consists of the Treasurys and mortgage-backed securities it acquired under a program known as quantitative easing. At the same time, the Fed did not raise its benchmark interest rate from its current 1 percent to 1.25 percent target, however, its updated rate forecast show that another hike this year is likely.

According to the CME Group's FedWatch tool, investors now see a 70 percent chance of a rate increase by the end of December. The highly-anticipated rollback signaled the central bank's effort to reverse the asset purchases it made as part of the extraordinary quantitative easing program it created to save the economy during and after the financial crisis.

"I think the biggest takeaway is that the Fed's numbers aren't as dovish as the market expected," said Kathy Jones, chief fixed income strategist for the Schwab Center for Financial Research. "All in all, it looks like the Fed is on the same track."


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