Morning Report 16 Dec 21: Wall St surges as Fed signals a winding up of bond buying

The ASX 200 is set for solid gains at the start of trade after US sharemarkets rebounded overnight. Investors digested the US Federal Reserve's pivot towards tighter monetary policy to combat rising prices, with the policy moves already largely priced into equity markets. Shares of Apple rose 2.9% and chipmaker Nvidia's shares rallied 7.5%. At the close of trade, the Dow Jones index rose by 383 points or 1.1%. The S&P 500 index lifted by 1.6% with the Nasdaq index higher by 328 points or 2.2%. All three were in negative territory for the day before the central bank’s decision.

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