US equities wavered on Monday, rallying back from earlier losses to break a five-day losing streak.

The S&P 500 finished the day 0.2 per cent higher. The technology-heavy Nasdaq Composite failed to regain positive territory, closing 0.1 per cent lower.

Last week was the worst for the S&P since June, although it remains close to the all-time high reached earlier this month, as investors fretted about the US Federal Reserve cutting its $120bn a month of bond purchases designed to boost lending and spending during the pandemic.

Comments in recent days from Fed officials, however, have suggested that potential tapering by the central bank meant policymakers thought the US economy was through the worst of the coronavirus crisis.

Patrick Harker, president of the Federal Reserve Bank of Philadelphia, told Nikkei that “markets are functioning well”. Emergency monetary stimulus “is no longer relevant”, he said.

His comments came…

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