US stocks hit fresh record highs again as Fed signals gradual tightening

Wall Street moved to yet more record highs yesterday driven by investors reacting positively to the Fed’s dovish stance on winding down stimulus measures.

The S&P 500 briefly touched a record high yesterday, as did the tech-heavy Nasdaq, but both pulled back slightly to rise 0.43 per cent and 0.90 per cent respectively.

Fed Chair Jerome Powell said on Friday the central bank would continue to be cautious in its approach to tapering its massive pandemic-era stimulus.

However, Powell did confirm the Fed will likely start tapering asset purchases this year, but reaffirmed rate rises are likely to be a long way off.