S&P 500 barely budges after Fed cuts rates by 25 bps
Nasdaq up >1%, S&P 500 gains, Dow ~flat
FOMC cuts rates 25 bps
Dollar down; bitcoin up; gold, crude both up >1%
U.S. 10-Year Treasury yield falls to ~4.35%
Welcome to the home for real-time coverage of markets brought to you by Reuters reporters. You can share your thoughts with us at markets.research@thomsonreuters.com
S&P 500 BARELY BUDGES AFTER FED CUTS RATES BY 25 BPS
The Federal Reserve cut interest rates by a quarter of a percentage point on Thursday as policymakers took note of a job market that has "generally eased" while inflation continues to move towards the U.S. central bank's 2% target.
"Economic activity has continued to expand at a solid pace," the central bank's rate-setting Federal Open Market Committee said at the end of a two-day policy meeting in which officials lowered the benchmark overnight interest rate to the 4.50%-4.75% range, as widely expected. The decision was unanimous.
The S&P 500 index .SPX is up around 0.6% on the day which is essentially where it was just before the statement was released.
The U.S. 10-year Treasury yield US10YT=RR is now around 4.35% vs around 4.34% just before the statement came out. The yield ended at 4.426% on Wednesday.
Regarding the statement, Ryan Detrick, chief market strategist at Carson Group, in Omaha, NE said:
“The Fed didn’t rock the boat it was widely assumed they would cut by 25 basis points, which they did. It was nice to see a unanimous decision.”
“The big question now is will they cut again in December? Our best guess is they do, as inflation continues to improve.”
Detrick added “It’s nice that they are recognizing some improvements in the U.S. economy. At the same time there are risks to a potentially slowing labor market, which in our opinion, leaves the door wide open to another cut in December at the next meeting."
Investors now await Fed Chair Powell's press conference at 2:30 pm ET.
(Terence Gabriel, Stephen Culp)
*****
FOR THURSDAY'S EARLIER LIVE MARKETS POSTS:
POST-ELECTION VIX PLUNGE SUGGESTS STRONG S&P 500 RALLY - CLICK HERE
TWO LABOR MARKET METRICS FOR FED DAY - CLICK HERE
S&P 500 INDEX NEARS 6k AHEAD OF THE FED - CLICK HERE
U.S. ELECTION PULLS RETAIL TRADERS TO STOCK MARKETS - CLICK HERE
NASDAQ COMPOSITE: CHARGING TOWARD A BATTLE LINE - CLICK HERE
TRUMP CONSTRAINTS COULD DECIDE EUROPEAN EQUITIES' FATE - CLICK HERE
EUROPE RISES ON STRONGER MINING, AUTOS, BUT EARNINGS DRAG - CLICK HERE
EUROPE BEFORE THE BELL: FUTURES RISE AHEAD OF JAMPACKED DAY - CLICK HERE
GERMAN POLITICAL DRAMA ADDS TO TRUMP RISKS FOR EUROPE - CLICK HERE
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
