U.S. Stock Market Rebound Continues – Facebook & Robinhood In Focus

U.S. stock markets staged a strong recovery overnight with the tech sector pushing the Nasdaq over 1% higher. Both the S&P 500 and Dow Jones gained around 1% with materials and mining rallying on positive economic news. But all eyes were on the Federal Reserve with Chair Jerome Powell making no change to the US$120 billion per month bond-buying program, but flagged it may begin tapering before the end of this year. Historically, this would see a sell-off in markets. However, the communication has been consistent whilst the economy appears to be on a much stronger footing than in previous attempts. In addition, the dot plot chart now suggests as many as four rate hikes in 2022, albeit a loose forecast, which would likely be a boon for the Aussie dollar. The debt ceiling issue has raised its head again with politicians showing faux concern about the prospect of default. There is little doubt the debt ceiling will be extended, hence why the market barely reacts.

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Source: Rask Media