19th Sep 2013 12:59
WASHINGTON (Alliance News) - After moving sharply higher over the course of the previous session, stocks may see some further upside in early trading on Thursday. The major index futures are currently pointing to a modestly higher open for the markets, with the Dow futures up by 27 points.
The upward momentum for the markets comes as traders continue to react positively to the Federal Reserve's decision to refrain from scaling back its stimulus program.
On Wednesday, the Fed said it would continue to purchase bonds at a pace of USD85 billion per month, noting that it decided to wait for more evidence that economic progress will be sustained before adjusting the pace of its purchases.
The move came as a surprise to economists and the markets and triggered a rally that lifted the Dow and the S&P 500 to new record highs. The Nasdaq also reached its best closing level in thirteen years.
In remarks at a press conference, Fed Chairman Ben Bernanke suggested that the decision to maintain the asset purchase program was a precautionary move due in part to lingering economic uncertainty as well as the potential for another budget crisis.
Subsequently, traders are likely to keep a close eye on the incoming economic data as well as developments in Washington in the coming weeks.
The Labor Department recently released a report showing that initial jobless claims saw a modest rebound in the week ended September 14th.
Copyright RTT News/dpa-AFX