Wall Street Today | Market Sees Bright Future After Fed Talk
Happy Friday! The market rebounded after Federal Reserve President Jerome Powell said everything short of 'we are cutting rates in September' at the Jackson Hole, WY Economic Symposium this morning. Indexes climbed to near record highs, with the PCE and $NVIDIA (NVDA.US)$ earnings report next week to look forward too.
Just past the 4 pm ET close, the $S&P 500 Index (.SPX.US)$ traded +1.15%, the $Dow Jones Industrial Average (.DJI.US)$ climbed 1.14%, and the $Nasdaq Composite Index (.IXIC.US)$ climbed 1.47%.
MACRO
The market climbed within all-time highs shortly after Powell hit the podium. News reports said the Federal Reserve was ready to cut rates. Powell did not specify the timeline of these rate cuts, but he said he was confident the economy was on the way to 2% inflation.
"The time has come to adjust, and the direction is clear," Powell said.
Fed officials' next policy meeting is scheduled for Sept. 17-18. They are widely expected to lower the benchmark federal funds rate at that meeting. Powell's comments Friday all but bring to a conclusion the Fed's historic inflation-fighting campaign, which Powell amplified from the same stage two years ago when he signaled his readiness to accept a recession as the price of lowering inflation.
Though Fed Powell's speech did not highlight the timeline for rate cuts, Wednesday FOMC meeting minutes from July paint a short time frame. Members reportedly were ready to cut rates in September if everything stayed the same; some even wanted to cut rates then.
Thursday, U.S. Initial Jobless claims showed that about 232k Americans were newly unemployed, around the forecast and the year average of 220k. Existing home sales came in at 3.95M for July, right around last month's 3.9M. S&P PMI came in slightly higher at 55.2 on Thursday.
SECTORS
Every sector on the S&P 500 was in the green Friday after the Fed news.
Oil futures settled higher Friday, extending a bounce from the previous session, after comments from head of the Federal Reserve confirmed prospects for interest-rate cuts that would help strengthen the economy - and demand for crude. Prices for the WTI and Brent crude still posted weekly losses, tied to overall worries over the outlook for global crude consumption.
$Crude Oil Futures(JAN5) (CLmain.US)$ climbed 2.57%, $Bitcoin (BTC.CC)$ climbed to $63k, Gold and silver climbed, $U.S. 2-Year Treasury Notes Yield (US2Y.BD)$ and the $U.S. 10-Year Treasury Notes Yield (US10Y.BD)$ both fell below 4%.
MOOVERS
Nvidia $NVIDIA (NVDA.US)$ and Tesla $Tesla (TSLA.US)$, continued to hold the crown for the most popular stock options. Shares of the two companies rallied Friday, tracking gains across the broader market, after Federal Reserve Chairman Jerome Powell said "the time has come" to cut interest rates. Both climbed about 4%.
Other climbers were $Enphase Energy (ENPH.US)$, and $Caesars Entertainment (CZR.US)$, each BLoomberg Radio called leveraged and debt-heavy firms. Solar stocks, also debt-heavy, climbed across the board.
Shares of Intel $Intel (INTC.US)$ and Goldman Sachs $Goldman Sachs (GS.US)$ are contributing to the blue-chip gauge's intraday rally, as the Dow was most recently trading 223 points higher.
$Intuit (INTU.US)$ fell 6% after reporting earnings Thursday night, where the firm beat estimates, but the QuickBooks owner missed expectations for projected revenue growth in the coming first quarter. It was the lowest decliner on the S&P 500.
$Workday (WDAY.US)$'s earnings Thursday in contrast, beat revenue and eps estimates and posted a subscription outlook that beat expectations. The stock climbed 12%.
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Disclaimer: This presentation is for informational and educational use only and is not a recommendation or endorsement of any particular investment or investment strategy. Indexes are unmanaged and cannot be directly invested in. Past performance is no indication of future results. Investing involves risk and the potential to lose principal. Investment information provided in this content is general in nature, strictly for illustrative purposes, and may not be appropriate for all investors. It is provided without respect to individual investors’ financial sophistication, financial situation, investment objectives, investing time horizon, or risk tolerance. You should consider the appropriateness of this information regarding your relevant personal circumstances before making any investment decisions. Past investment performance does not indicate or guarantee future success. Returns will vary, and all investments carry risks, including loss of principal. Moomoo makes no representation or warranty regarding its adequacy, completeness, accuracy, or timeliness for any purpose of the above content. See this link for more information.
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only.
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104668340 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
vampire77 : What does cutting interest rates mean?
Alen Kok : ha ha
Malik ritduan : sturdy
104247826 :![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
affable Blobfish_403 : Public opinion is all over the place to cut interest rates. The data suggests that interest rates should be cut in the next step. The Federal Reserve has come up with the perfect big cake for the general election - cutting interest rates! Manipulating political interest rate cuts is obvious, but the suffering after political interest rate cuts is endless, so we should keep watching!
103677010 : noted
龙邦第一财子 : morning, good
thoughtful Bat_8163 vampire77 : Potentially more spending if unemployment stays low