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Wall Street’s main stock indexes closed at record highs on Wednesday after the Federal Reserve eased investor jitters bykeeping borrowing costs unchangedand reinforcing expectations that rates could be cut as many as three times this year.

The Dow Jones Industrial Average jumped 401.37 points, or 1%, to a record close of 39,512.13. The S&P 500 gained 0.9% and topped 5,200 for the first time, while the Nasdaq surged more than 200 points, or 1.2%

The Fed’s policy statement described inflation as remaining “elevated,” and it updated quarterly economic projections to forecast growth of 2.1% for the year versus 1.4% projected in December and an unemployment rate ending the year at 4%, lower than the 4.1% anticipated in December.

Stocks added to gains after Fed Chair Jerome Powell said in a press conference that despite recent inflation data coming in hotter than expected, the numbers “haven’t really changed the overall story, which is that of inflation moving down gradually, on a somewhat bumpy road.”

Strategists said Wall Street was reassured by Powell’s comments.

“He said he wasn’t trying to dismiss any data but he kind of gave the market a reason they could use to dismiss the data,” said Alex Coffey, senior trading strategist at TD Ameritrade.

“We came in to this day feeling Jerome Powell might push back on market expectations or pivot away from dovish expectations since December because of the data we’ve had in the last two months,” said Coffey. “While he didn’t necessarily go full dove, it was dovish versus recent market worries.”

Most of the S&P’s 11 major sectors gained ground.

The healthcare sector was under pressure during the session partly due to COVID-19 vaccine makers. US-listed shares of BioNTech dropped after it reported a 2023 revenue and earnings plunge as it shifted focus to cancer drug development.

Shares of COVID-19 vaccine makers Moderna and Novavax  both eased.

Boosting the consumer discretionary sector, Tesla gained after confirming to Reuters that it will raise the price of its China-produced Model Y vehicles by 5,000 yuan ($694.55) from April 1.

Equinix shares eased after Hindenburg Research said it has taken a short position in the data center operator.

Chipotle Mexican Grill shares climbed after the company said its board had approved a 50-for-1 split of its common stock.

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Follow live: Panthers, Leafs battle to advance to Eastern Conference finals

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U.S. routs Kazakhstan; into quarters at worlds

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U.S. routs Kazakhstan; into quarters at worlds

HERNING, Denmark — After a goalless opening period, the United States went on to secure its place in the quarterfinals of the ice hockey world championship with a 6-1 rout of Kazakhstan on Sunday.

The Americans are tied atop Group B with the Czech Republic on 14 points, one more than Switzerland. The already qualified Czechs and Swiss have two more games to play in the preliminary round. The U.S. completes the group stage against the Czechs on Tuesday.

“I thought we were ready to play out of the gate,” U.S. head coach Ryan Warsofsky said. “We need to continue to build and get ready for what will be a big challenge on Tuesday against the Czechs.”

Despite an unproductive first period in Herning, the U.S. jumped to a commanding five-goal lead in the second.

Frank Nazar broke the deadlock 6:58 into the period with a shot from the left circle above the glove of Sergei Kudryavtsev. The forward added two assists later in the game.

Defenseman Jackson Lacombe wristed a shot from the blue line through heavy traffic to double the lead with 8:14 to go in the second period.

The next two goals came in a span of 58 seconds.

Forward Tage Thompson scored his fifth at the tournament — after receiving a pass from defenseman Zeev Buium — to make it 3-0 with 6:00 left. Matty Beniers increased the advantage to four from the left circle before Michael Kesselring scored with a high shot from a tight angle from the boards 56 seconds before the end of the period.

U.S. defensive star Zach Werenski skated toward the goal before beating backup goalie Maxim Pavlenko who came on at the beginning of the final period.

Goaltender Jeremy Swayman made 16 saves for the U.S.

In Stockholm, Austria beat Slovenia 3-2 in a shootout to keep alive its hopes of reaching the quarterfinals for the first time. Austria is tied in fourth with Slovakia in Group A.

The top four teams from each group will advance.

Later Sunday, Switzerland meets Hungary in Herning and Slovakia plays Latvia in Stockholm.

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Post-Brexit EU reset negotiations ‘going to the wire’, says minister

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Post-Brexit EU reset negotiations 'going to the wire', says minister

Negotiations to reset the UK’s post-Brexit relationship with the EU are going “to the wire”, a Cabinet Office minister has said.

“There is no final deal as yet. We are in the very final hours,” the UK’s lead negotiator Nick Thomas-Symonds told Sky’s Sunday Morning with Trevor Phillips.

On the possibility of a youth mobility scheme with the EU, he insisted “nothing is agreed until everything is”.

“We would be open to a smart, controlled youth mobility scheme,” he said. “But I should set out, we will not return to freedom of movement.”

Politics latest: PM outlines ‘benefits’ for UK from closer EU ties

The government is set to host EU leaders in London on Monday.

Put to the minister that the government could not guarantee there will be a deal by tomorrow afternoon, Mr Thomas-Symonds said: “Nobody can guarantee anything when you have two parties in a negotiation.”

But the minister said he remained “confident” a deal could be reached “that makes our borders more secure, is good for jobs and growth, and brings people’s household bills down”.

“That is what is in our national interest and that’s what we will continue to do over these final hours,” he said.

“We have certainly been taking what I have called a ruthlessly pragmatic approach.”

On agricultural products, food and drink, Mr Thomas-Symonds said supermarkets were crying out for a deal because the status quo “isn’t working”, with “lorries stuck for 16 hours and food rotting” and producers and farmers unable to export goods because of the amount of “red tape”.

Asked how much people could expect to save on shopping as a result of the deal the government was hoping to negotiate, the minister was unable to give a figure.

Read more:
What could a UK-EU reset look like?
Starmer’s stance on immigration criticised

On the issue of fishing, asked if a deal would mean allowing French boats into British waters, the minister said the Brexit deal which reduced EU fishing in UK waters by a quarter over five years comes to an end next year.

He said the objectives now included “an overall deal in the interest of our fishers, easier access to markets to sell our fish and looking after our oceans”.

Turning to borders, the minister was asked if people would be able to move through queues at airports faster.

Again, he could not give a definitive answer, but said it was “certainly something we have been pushing with the EU… we want British people who are going on holiday to be able to go and enjoy their holiday, and not be stuck in queues”.

PM opens door to EU youth mobility scheme

A deal granting the UK access to a major EU defence fund could be on the table, according to reports – and Prime Minister Sir Keir Starmer has appeared to signal a youth mobility deal could be possible, telling The Times that while freedom of movement is a “red line”, youth mobility does not come under this.

The European Commission has proposed opening negotiations with the UK on an agreement to facilitate youth mobility between the EU and the UK. The scheme would allow both UK and EU citizens aged between 18 and 30 years old to stay for up to four years in a country of their choosing.

Earlier this month, Home Secretary Yvette Cooper told Phillips a youth mobility scheme was not the approach the government wanted to take to bring net migration down.

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Lack of UK training ‘big driver of net migration’

When this was put to him, Mr Thomas-Symonds insisted any deal on a youth mobility scheme with Europe will have to be “smart” and “controlled” and will be “consistent” with the government’s immigration policy.

Asked what the government had got in return for a youth mobility scheme – now there had been a change in approach – the minister said: “It is about an overall balanced package that works for Britain. The government is 100% behind the objective of getting net migration down.”

Phillips said more than a million young people came to the country between 2004 and 2015. “If there isn’t a cap – that’s what we are talking about,” he said.

The minister insisted such a scheme would be “controlled” – but refused to say whether there would be a cap.

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‘It’s going to be a bad deal’

Shadow cabinet office minister Alex Burghart told Phillips an uncapped youth mobility scheme with the EU would lead to “much higher immigration”, adding: “It sounds very much as though it’s going to be a bad deal.”

Asked if the Conservatives would scrap any EU deal, he said: “It depends what the deal is, Trevor. And we still, even at this late stage, we don’t know.

“The government can’t tell us whether everyone will be able to come. They can’t tell us how old the young person is. They can’t tell us what benefits they would get.

“So I think when people hear about a youth mobility scheme, they think about an 18-year-old coming over working at a bar. But actually we may well be looking at a scheme which allows 30-year-olds to come over and have access to the NHS on day one, to claim benefits on day one, to bring their extended families.”

He added: “So there are obviously very considerable disadvantages to the UK if this deal is done in the wrong way.”

Jose Manuel Barroso, former EU Commission president, told Phillips it “makes sense” for a stronger relationship to exist between the European Union and the UK, adding: “We are stronger together.”

He said he understood fishing and youth mobility are the key sticking points for a UK-EU deal.

“Frankly, what is at stake… is much more important than those specific issues,” he said.

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