NEW YORK (AP) — A stock market surge took a pause Monday after investors pushed indexes to record levels last week.
Investors will be watching the Federal Reserve this week for clues about what it plans to do next with its economic stimulus program. On Wednesday Federal Reserve Chairman Ben Bernanke will appear before Congress and the central bank will release minutes of its most recent policy meeting.
The Fed is buying $85 billion of bonds every month to keep long-term interest rates low. That has encouraged investors to put money into stocks instead of bonds.
Policy makers are unlikely to cut back on stimulus just yet since U.S. economic growth is likely to slow in the second quarter, said Scot Wren, a senior equity strategist at Wells Fargo Advisors. As a consequence, Wren said, stocks are likely to continue to rise.
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