Precise Investors Editorial Team
MSCI’s gauge of stocks across the globe edged up 0.69 points, or 0.07%, to 1,051.77 after jumping to an intraday record of 1,055.04, marking its third straight intraday record
Global stocks hit an intraday record for a third straight session on Wednesday, while the U.S. dollar largely held on to gains after the country’s central bank kept rates steady, as widely expected.
In keeping rates unchanged, the central bank cited still-elevated inflation alongside solid economic growth. The bank’s policy statement gave little indication of when it might reduce borrowing costs again.
U.S. central bank Chair Jerome Powell, in comments following the bank’s statement, dispelled any notion the bank might consider a rate hike in the near future.
A steadier job market and sticky inflation made the central bank wait to see how previous rate cuts will support U.S. economic growth, said Matthias Scheiber, head of the multi-asset team at Allspring Global Investments in London.
That said, the investment and capital spending boom caused by artificial intelligence and the sharp rise of commodity prices, including industrial metals, might result in a stickier inflation path for this year, Scheiber added.
Markets are not pricing in more than a 50% chance of a rate cut until the central bank’s June meeting, according to CME’s FedWatch Tool.
After the central bank’s statement, the S&P 500 closed virtually unchanged after crossing above 7,000 for the first time during the session. Investors awaited earnings from Microsoft, Tesla and Meta Platforms after the closing bell, with results from Apple due on Thursday.
The Dow Jones Industrial Average gained 12.19 points, or 0.02%, to 49,015.60, the S&P 500 dropped 0.57 points, or 0.01%, to 6,978.03 and the Nasdaq Composite added 40.35 points, or 0.17%, to 23,857.45.
MSCI’s gauge of stocks across the globe edged up 0.69 points, or 0.07%, to 1,051.77 after jumping to an intraday record of 1,055.04, marking its third straight intraday record. The index was on track for a sixth straight daily gain, its longest streak since a seven-session run in late December.
The pan-European STOXX 600 index closed down 0.75%, weighed by a drop of nearly 8% in LVMH after the Louis Vuitton and Tiffany owner reported quarterly results, but CEO Bernard Arnault said he was cautious about the year ahead.
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