Wall Street breaks more records
Thursday, 11 October 2007
The Dow Jones and S&P 500 indexes both set new record highs Tuesday after the release of the minutes of the US Federal Reserve's 18 September meeting, reports BBC.
The Dow Jones Industrial Average closed up 119.91 points or 0.85 per cent at 14,163.64. The Standard and Poor's 500 index rose 12.55 points or 0.81 per cent to 1,565.13.
The minutes showed that the Fed's inflation expectations were contained, making more rate cuts likely.
The Fed cut interest rates on 18 September from 5.25 per cent to 4.75 per cent.
"The likelihood of having a second cut either this month or at the December meeting seems greater than before the minutes," said Richard E Cripps from Stifel Nicolaus.
Traders were also encouraged by comments from Federal Reserve Bank of St Louis President William Poole who said he believed the financial markets were "still fragile" but that they appeared to be stabilising.
The Dow Jones Industrial Average closed up 119.91 points or 0.85 per cent at 14,163.64. The Standard and Poor's 500 index rose 12.55 points or 0.81 per cent to 1,565.13.
The minutes showed that the Fed's inflation expectations were contained, making more rate cuts likely.
The Fed cut interest rates on 18 September from 5.25 per cent to 4.75 per cent.
"The likelihood of having a second cut either this month or at the December meeting seems greater than before the minutes," said Richard E Cripps from Stifel Nicolaus.
Traders were also encouraged by comments from Federal Reserve Bank of St Louis President William Poole who said he believed the financial markets were "still fragile" but that they appeared to be stabilising.