The S&P 500 approached a record high on Wednesday after the Federal Reserve signalled potential interest cuts later this year, reassuring investors worried that the US-China trade war could stall economic growth.Saying it "will act as appropriate to sustain" economic expansion, the central bank signaled rate cuts of as much as half a percentage point over the remainder of 2019.
Buoyed by growing confidence the Fed will cut rates, and by hopes of an end to the US-China trade war, US stocks have climbed in recent weeks. The S&P 500 has gained 6 per cent in June. The Dow Jones Industrial Average rose 0.15 per cent to end at 26,504.27 points, while the S&P 500 gained 0.30 per cent to 2,926.44.Contributing more than any other stock to advances on the Nasdaq and S&P 500, Adobe Inc surged 5.2 per cent after the Photoshop software provider beat analysts' estimates for quarterly profit and revenue.
Stop pumping out these rubbish headlines. This market can no longer operate without QE. So the central banks have effectively promised to bail out stocks when recession hits. That is the only expectation driving the market right now. Who can inflate their market the most?