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Market indices rebound after Fed minutes taper talk

PUBLISHED ON 2021-08-21 01:48:00 EST Ishika Dangayach

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U.S. stocks surged Friday despite concern over possible monetary shifts that might wipe some of the market boosts.

The broad S&P 500 index climbed 0.86 % and Dow Jones Industrial Average surged 0.69 %. The Nasdaq Composite, which is heavily weighted toward technology, rose 0.47 % around 3:46 PM ET.

The meeting of the Federal Reserve showed that policymakers are willing to retreat at the rate of their monthly purchases of bonds, perhaps before year-end.

However, at the former meeting of the Federal Open Market Committee (FOMC) on July 27-28 the central bank was determined to explain that asset cutting was not a prelude to a subsequent rise in the rate. The minutes indicate that "several" banking operators preferred to wait until the beginning of 2022.

Despite Friday's advances, all three indices have declined weekly, as the share of economically sensitive firms, such as banks, material industries, and energy producers are balanced against heavy losses.

The United States crude oil is 2.39 % lower to $61.98 barrel. This week's price of oils was scaled by the reinforcement of the dollar which makes the commodity to holders of foreign currencies more costly.

The US shares of China's technology-based businesses have fluctuated as market players have processed recent sells off from the ongoing regulatory crackdown in Beijing wiped Chinese markets half a trillion dollars this week, Reuters stated.

AlibabaHolding Group dropped 1.91%, JD.com Inc plummeted 2.1% while Tencent MusicEntertainment Group rose 3.25 % Didi Global surged 3.54 % and iQiyi Inc rose 1.22 %

Regulators in Asia have increased their scrutiny of internet technology businesses this week. According to several media reports, Chinese authorities aim to make other industries difficult as well.

Overseas, the Stoxx Europe 600 index rose 0.3 % while Nikkei 225 plummeted 0.98 %, Hang Seng Index dropped 1.84 %, and Shanghai Composite Index declined 1.10 %.

With inputs from WSJ

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