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The New York Stock Exchange (NYSE) continued with a positive performance on Tuesday, with the S&P 500 and Nasdaq indices hitting new record highs. Wall Street is anticipating the upcoming speech by Federal Reserve Chairman Jerome Powell at the Jackson Hole event.
The Federal Reserve’s most recent meeting minutes showed that a majority of the Federal Open Market Committee (FOMC) members believe that it would be suitable to scale back the massive asset purchases before the end of the year or in Q1 of 2022.
The Fed has been purchasing $120 billion worth of bonds and mortgage-backed securities since the onset of the global pandemic in March 2020.
The FDA’s full approval for the Pfizer-BioNTech coronavirus vaccine is also helping to ease concerns over the spread of the Delta variant, especially with many listed companies reporting positive financial results in the second quarter.
The approval is set to encourage the U.S. government to push more companies to require their employees to be vaccinated.
The Dow Jones Industrial Average finished higher by 30.55 points, or 0.1%, at 35,366.26 points.
Meanwhile, the S&P 500 index scored a modest gain of 6.70 points, or 0.2%, to close at a new record high of 4,486.23 points.
At the same time, the Nasdaq Composite added 77.15 points, or 0.5%, to set a new record-high closing level of 15,019.80 points.
The tech-savvy index managed to score gains, despite the increase in Treasury bond yields, with the benchmark U.S. 10-year Treasury bond yield leveling up by 3.5 basis points to 1.289%.
On another front, the U.S. Securities and Exchange Commission (SEC) began issuing new disclosure requirements for Chinese firms that are looking to be listed on Wall Street.
Despite tensions between Washington and Beijing, the move comes with the aim of limiting investors’ exposure to financial risks.
Media reports said that some Chinese companies are receiving detailed SEC guidelines on further disclosures, especially concerning the use of variable interest entities (VIEs) in their initial public offerings (IPOs).
In addition, companies are asked to assess the risk of the Chinese government meddling with their activities. This comes after the SEC recently froze Chinese IPOs on Wall Street.
