Economy

Dow hits record, S&P ends 7-day rally as Fed on track to start tapering

Nasdaq gains 1.29% this week

Ovunc Kutlu   | 22.10.2021
Dow hits record, S&P ends 7-day rally as Fed on track to start tapering

ANKARA

The Dow Jones posted a new record, but the S&P 500 ended its seven consecutive days of winning streak on Friday, after the Federal Reserve Chair said the central bank is on track to start tapering.

After hitting an all-time high of 4,559.67 points shortly after opening bell, the S&P 500 fell almost 5 points, or 0.11%, to end the day at 4,544. This week, the index soared 1.64%, according to data compiled by Anadolu Agency.

The Nasdaq decreased 125 points, or 0.82%, to close the session at 15,090. The tech-heavy jumped 1.29% for the week.

The Dow Jones, on the other hand, rose almost 74 points, or 0.21%, to 35,677. The blue-chip index climbed to a record high of 35,765.02 points during the session, while it gained 1.08% for the week.

Fed Chair Jerome Powell said earlier that the central bank is on track to begin reducing its asset purchases, the process known as tapering.

He argued that the start of tapering is not likely to disrupt the recovery in the labor market, and markets are prepared for it, adding that maximum employment in the US labor market could be reached next year.

The yield on 10-year US Treasury notes was down 1.8% to 1.645%, while the dollar index fell 0.17% to 93.61.

The VIX volatility index, known as the fear index, rose 2.86% to 15.44.

Oil prices reversed course to end their losing streak. International benchmark Brent crude was trading at $85.81 with a 1.4% gain, and US benchmark West Texas Intermediate was at $84.09 -- a 1.9% increase.

Precious metals gained with gold adding 0.6% to $1,794 per ounce, and silver increasing 0.7% to $24.33 an ounce.

After hitting an all-time high of $67,000 Wednesday, Bitcoin was trading at $61,100 with a 2.7% loss.

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