Stocks close higher, S&P 500 hits 3,000 for the first time as Fed chief signals rate cut ahead

"I think it's safe to say Powell has his dove hat on and a quarter [rate] cut is coming," said Mike Loewengart, vice president of investment strategy at E-Trade. "What's interesting though is how quickly Powell pointed abroad to support the case for a weakening economy. Because the reality is things are still pretty strong here at home—last week's jobs numbers made that clear.

"Crosscurrents have reemerged," Powell said. "Many FOMC participants saw that the case for a somewhat more accommodative monetary policy had strengthened. Since then, based on incoming data and other developments, it appears that uncertainties around trade tensions and concerns about the strength of the global economy continue to weigh on the U.S. economic outlook."

Jerome Powell, chairman of the U.S. Federal Reserve, speaks during a House Financial Services Committee hearing in Washington, D.C., on Wednesday, July 10, 2019.The major stock index pared gains as Powell answered questions from lawmakers, however. While answering questions from lawmakers, Powell reiterated that current trade conditions and muted economic activity have dampened the U.S. economy's outlook. He noted, however, that the U.S. economy remains on solid ground.

The S&P 500 closed back below 3,000, up 0.5%. The Dow, meanwhile, climbed 76 points, or 0.3%, after rallying nearly 200 points. The Nasdaq closed 0.8% higher as Amazon rose 1.5% to break above $2,000 per share."Powell's prepared testimony struck a decidedly dovish cord with 'uncertainties' over trade and global growth since the June FOMC meeting characterized as having dimmed the outlook.

His testimony came after the Fed opened the door to cutting rates at its previous monetary policy meeting in June. The central bank dropped the word "patience" in its statement then.from the June policy meeting on Wednesday, which reiterated the case for easier monetary policy has strengthened.

He is scared to do the he right thing. Every one who has stocks and assets wants low rates so FED will keep doing so. Why lose your job over it? Let the poor keep borrowing.

Rate cuts- a bigger mistake on top of mistake of Obama admin to keep rates lower & build legacy. Only advantage is to wealthy & businesses from rising asset valuations. Middle & lower income groups are suffering hardships. This is same as building stock market legacy by Obama.

4 rate cuts are baked into the markets. Does it really matter if they cut 25, 50, or 75 basis points?

Rate cuts- a bigger mistake on top of mistake of Obama admin to keep rates lower & build legacy. Only advantage is to wealthy & businesses from rising asset valuations. Middle & lower income groups are suffering the hardships. Trump is building stock market legacy, same as Obama.

I’m not one of those Trump supporters who think he is a genius, or even a particularly good businessman. But it’s interesting how far ahead of the Fed he was on this....

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