Fed Chairman Bower says he sees “some bubbles in U.S. stocks” Dow Jones closes in the black after a sharp drop in late trading

Wednesday (28) U.S. President Joe Biden announced the $1.8 trillion “American Family Plan” and tax increase plan, the Federal Reserve Board as expected to maintain interest rate policy on hold, Fed Chairman Ball in a press conference continued to downplay the risk of inflation, prompting the S&P once to a new record high in the session.

S&P 11 major boards have 5 major boards closed in the red, energy, communication services, financial sectors led the rise, information technology, health care and real estate led the decline. (Photo: finviz)

However, Bauer did not shy away from mentioning that “it is true that we have seen some bubbles in the stock market and elsewhere”, this statement prompted the U.S. stocks to kill sharply in the last fifteen minutes, the S&P should turn black, Microsoft led the decline in technology stocks, the Dow Jones closed down more than 160 points,.

The U.S. Federal Open Market Council (FOMC) announced its latest interest rate resolution on Wednesday (28), the Federal Reserve hinted that economic risks have weakened, while maintaining near-zero interest rates and continuing the pace of asset purchases of $120 billion per month.

Bauer held a press conference after the meeting did not shy away from mentioning: “Some asset prices are very high, in the capital markets did see some bubbles, which is true. I wouldn’t say it has nothing to do with monetary policy, but it has a lot to do with vaccinations and economic restarts.”

In addition, on Wednesday President Joe Biden launched the $1.8 trillion “American Family Plan,” which would invest in education, childcare and paid leave in the United States, and would raise the capital gains tax on wealthy Americans to 39.6 percent from the original 20 percent, almost doubling it, but abandoned plans to raise the estate tax.

Wednesday (28) the performance of the four major U.S. stock indices.

The U.S. Dow Jones fell 164.55 points, or 0.48%, to close at 33,820.38 points.

The S&P 500 index fell 3.36 points, or 0.080%, to close at 4,183.36 points.

The Nasdaq fell 39.19 points, or 0.28%, to close at 14,051.03.

The Philadelphia Semiconductor Index fell 47.12 points, or 1.46%, to close at 3,178.49.

Five of the 11 major S&P sectors closed in the red, with energy, communication services and financials leading the way, and information technology, health care and real estate leading the way down. (Photo: finviz)