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Dear Trading God Friend, Â
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U.S. stocks rose following the Federal Reserve's two-day policy meeting.
The Dow and broader U.S. stock market surged on Wednesday, as the Federal Reserve wrapped up its two-day policy meeting in Washington.
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All of Wall Street's major indices finished higher, with the Dow Jones Industrial Average (DIA) rising 162.76 points, or 0.6%, to 26,542.04.
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The broad S&P 500 Index (SPY) rallied advanced 1.3% to close at 3,258.61.
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All 11 primary sectors reported gains, with energy leading the pack. Financials, industrials and information technology also outperformed.
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Meanwhile, the technology-focused Nasdaq Composite Index (QQQ) rallied 1.4% to settle at 10,542.94
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A measure of implied volatility known as the CBOE VIX (VXX) declined on Wednesday, a sign that investors are expecting calmer trading conditions over the next 30 days. VIX fell to a session low of 23.73 on a scale of 1-100 where 20 represents the historic average. It would eventually settle down 5.9% at 23.95.
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The Federal Reserve kept monetary policy unchanged on Wednesday and said the U.S. economy faces major challenges overcoming the pandemic. Policymakers remain firmly committed to keeping stimulus measures in place for the foreseeable future.
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âThe path of the economy will depend significantly on the course of the virus,â the [central bank said in a statement](.
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It went on to add:
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âThe ongoing public health crisis will weigh heavily on economic activity, employment, and inflation in the near term, and poses considerable risks to the economic outlook over the medium term."
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The Final Word: COVID-19 remains a serious health risk--one that is having an extremely negative impact on the economy. As of Wednesday, the United States had nearly 4.4 million confirmed cases, far higher than any other country.Â
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We'll talk soon, Â
Trading Gods Â
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