April 28, 2021 – The Federal Reserve held its key interest rate near zero and said it plans to continue supporting the economic recovery while acknowledging recent progress in growth and employment.
Inflation has risen, largely reflecting transitory factors. All members of FOMC voted in favor of the policy action
The S&P 500 slipped into the red Wednesday after hitting record intraday highs as the Federal Reserve left rates steady and signaled ongoing support for the recovery. The S&P 500 closed 0.05% lower after hitting a intraday record of 4,201.85.
The Dow Jones Industrial Average fell 0.48%, or 164 points, and the Nasdaq Composite was down 0.3%.
The Fed left its benchmark rate unchanged and said that while the pace of recovery has improved, there was still a long way to go until the economy achieves its inflation and labor market objectives.
The unchanged central bank decision pressured bond yields, helping tech cut some of its losses following mixed corporate earnings. The market is still volatile at the moment.
Investors still expect S&P500 to go up and continue to reach new record highs now with the big companies reporting their first quarter earnings.
Facebook (NASDAQ:FB), and Apple (NASDAQ:AAPL) will report quarterly results on Wednesday, with Amazon.com (NASDAQ:AMZN) reporting on Thursday.
Asian Video Game Publisher Nexon Buys $100M in Bitcoin
A South Korean-Japanese video game publisher said it made a $100 million purchase of bitcoin (BTC, -0.58%), adding itself to the ranks of companies such as Tesla and MicroStrategy that used corporate cash to load up on the leading cryptocurrency.
Our purchase of bitcoin reflects a disciplined strategy for protecting shareholder value and for maintaining the purchasing power of our cash assets,” said Owen Mahoney, president and CEO of Nexon, per the release.
The CEO added that, given the current economic environment, his firm believes bitcoin offers “long-term stability and liquidity” while also maintaining the value of its cash for future investments.
(source: Bloomberg, Investing)
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