S&P 500 hits 2,000 mark for first time on Fed rate signal

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The S&P 500 briefly crossed the 2,000 threshold on Monday after US Federal Reserve chair Janet Yellen signalled she will hold back on any aggressive move on interest rates.

Late last Friday Yellen told central bankers while the US economy has made significant progress, there is a possibility the labour market is still not functioning normally. She said the Fed was waiting for more evidence before deciding when to raise interest rates.

In reaction US markets rose once again on Monday, up 0.5% to close at a new record high of 1,998 points, having briefly crossed the 2,000 mark during trading.

Other US indices were also up, with a boost to financial companies pushing the Dow Jones up 0.4%. The biggest climbers were J.P. Morgan Chase and Goldman Sachs.

With UK markets shut for the Bank Holiday, European markets were also buoyant on Monday. The Euro Stoxx jumped 2.2%, while Germany's DAX was up 1.8%.

However, Asian markets fell overnight, with Shanghai's Shenzhen CSI 300 sliding 0.8% and Japan's Nikkei off 0.6%.

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