Stocks Open Higher Ahead Of Federal Reserve’s Economic Update

TOPLINE

The market opened slightly higher on Wednesday as technology stocks continue to outperform and Wall Street awaits an update on the economy from the Federal Reserve.

KEY FACTS

Crucial quote

Markets are in a “holding pattern” ahead of the Fed’s update, says Vital Knowledge founder Adam Crisafulli. Despite “full economic normalization” being difficult to achieve amid an uncertain health backdrop, “this remains one of the most astoundingly resilient markets in a very long time,” he says.

Big number: 10,000.

With tech stocks making a comeback in recent days, the Nasdaq hit a new record high on Tuesday, briefly climbing above 10,000 for the first time ever. Tech stocks like Amazon, Apple, Facebook and Microsoft all hit new records on Wednesday, boosting the index higher.

Key background

Stocks have continued to rally on optimism about reopening the economy and a faster than expected recovery from the coronavirus pandemic. The market has so far had a strong start to June, building on back-to-back monthly gains. The S&P 500 on Monday turned positive for 2020, fully recouping its losses from the coronavirus sell-off earlier this year. The index is now up more than 45% from its low point on March 23.

Further reading

Nasdaq Hits Record High As Amazon, Apple Shares Jump (Forbes)

S&P 500 Turns Positive, Fully Recovering Coronavirus Losses (Forbes)

Nasdaq Hits Record High, Dow Jumps 800 Points After U.S. Economy Adds 2.5 Million Jobs In May (Forbes)

Mass Protests Across The U.S. Have No Impact On Stocks, What Gives? (Forbes)

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