S&P 500 ends flat in wake of Fed minutes
Published on Jan 9, 2014 6:28 AM
NEW YORK (REUTERS) - The S&P 500 finished nearly flat on Wednesday as equity indexes had a muted reaction to the minutes from the United States (US) Federal Reserve's most recent meeting, while Micron's strong results helped buoy the Nasdaq.
Minutes of the Fed's Dec 17-18 meeting, after which the US central bank announced its decision to begin trimming its monthly bond purchases, showed Fed officials were careful to tread lightly as they embarked on the tapering process.
The Fed's accommodative policies were the main driver of the S&P 500's rally of nearly 30 percent in 2013. The programme is expected to keep a floor under stock prices for as long as it continues.
"The financial markets really didn't move at all, but typically history would suggest they need a little bit of time to just digest these things," said Mr Darrell Cronk, regional chief investment officer of Wells Fargo Private Bank in New York.
To continue reading, log in if you are a subscriber
Enjoy 2 weeks of unlimited digital access to The Straits Times. Get your free access now!