Stocks surge then pare gains in volatile trading following the Fed's super-sized rate cut: Live updates

  • 📰 nbcsandiego
  • ⏱ Reading Time:
  • 90 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 39%
  • Publisher: 51%

News Nouvelles

Belgique Dernières Nouvelles,Belgique Actualités

Stocks were volatile Wednesday after the Federal Reserve lowered interest rates in a half-point percentage move.

in a half-point percentage move, a bigger move than many traders had hoped for but one that also raised concerns about the state of the economy.was up more than 375 points before paring that gain. It was last up about 250 points, or 0.6%. TheThe Fed lowered its overnight lending rate to a range of 4.75%-5% from 5.25%-5.5%. The magnitude of the rate cut came in-line with traders' expectations, according to the CME Group's FedWatch tool.

"In this context, we believe equity gains will broaden, with continued potential for growth stocks, particularly in the technology sector, to rise further," Belski said in a Wednesday note."In addition, while Fed rate cuts in non-recessionary periods have historically been favorable for equities overall, they also make growth stocks more attractive, as lower rates increase the present value of these companies' future cash flows.

As the dollar weakened against the yen in the lead-up to the Federal Reserve rate cut announcement Wednesday afternoon, further dollar-yen volatility could be on hand this week when the Bank of Japan starts its two-day policy meeting Thursday. However, the economic data following the rate cut may matter more than the rate cuts themselves, Cau added. In a no-recession scenario, markets typically remain muted before rising by mid-teen percentages in the following 12 months, per the strategist."It can take two to three quarters for economic growth to rebound after the first cut, so we won't know for sure whether a recession is avoided or not for some time.

"A 50 basis point cut is slightly supportive of the oil market since it translates into a weaker dollar and stronger prices for dollar denominated commodities," Lipow said. "There are some viewpoints that it doesn't matter if they go 25 or 50, as long as the dot plot shows 100bps by year-end," BTIG analyst Jonathan Krinsky said in a Tuesday note."We tend to agree with that, but also think the setup for a 'false breakout' remains high regardless of meeting. It's also highly unusual to be this close to a meeting with this much uncertainty."hit a marginal new all-time high on Tuesday before pulling back.

 

Merci pour votre commentaire. Votre commentaire sera publié après examen.
Nous avons résumé cette actualité afin que vous puissiez la lire rapidement. Si l'actualité vous intéresse, vous pouvez lire le texte intégral ici. Lire la suite:

 /  🏆 524. in BE

Belgique Dernières Nouvelles, Belgique Actualités

Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.

Stocks tick higher as Wall Street awaits Fed minutes: Live updatesThe S&P 500 and Nasdaq Composite broke an eight-day winning streak during Tuesday's session.
La source: CNBC - 🏆 12. / 72 Lire la suite »

Stocks rise as traders await comments from Fed Chair Powell: Live updatesTraders are looking ahead to commentary from Fed Chair Jerome Powell on Friday for further clues about a potential rate cut.
La source: CNBC - 🏆 12. / 72 Lire la suite »

Live Coverage: Fed to surprise rock Gold, stocks, US Dollar in any of these four scenariosWill it be a 25 or a 50-bps Fed cut? Uncertainty about the cut is rare, and there are other factors such as the dot plot and Chair Powell's conference.
La source: FXStreetNews - 🏆 14. / 72 Lire la suite »

Tech Stocks Surge As Investors Eye Fed Rate CutShares of tech companies like Nvidia, Microsoft, Amazon, and Apple climbed Tuesday amid growing confidence that the Federal Reserve will announce a significant interest rate reduction at its upcoming meeting. Investors are betting that a cut would stimulate economic growth and boost corporate profits.
La source: Investingcom - 🏆 450. / 53 Lire la suite »

Wednesday's comeback shows why stocks may be volatile the rest of SeptemberYesterday's moves were enough to give any investor whiplash.
La source: CNBC - 🏆 12. / 72 Lire la suite »