Get 40% Off
⚠ Earnings Alert! Which stocks are poised to surge?
See the stocks on our ProPicks radar. These strategies gained 19.7% year-to-date.
Unlock full list

Stocks – S&P Hits New Highs After Fed's Latest Rate Cut

Published 30/10/2019, 19:49
Updated 30/10/2019, 21:55
© Reuters.

Investing.com - Federal Reserve Chairman Jerome Powell said monetary policy is "in a good place," and investors agreed Wednesday, pushing stocks higher and the S&P 500 to new intraday and closing highs.

The S&P 500 set a new intraday high of 3,050.10 and finished up 0.33% at just under 3,047, its second closing high in three days.

The Dow Jones industrials jumped 0.43%, with the Nasdaq Composite up 0.33% and the Nasdaq 100 index up 0.44%.

The market moved up during Powell's news conference after the Fed decided to cut interest rates for the third time in three meetings. But the Fed wants to wait before making another move. The federal funds rate was cut to 1.5% to 1.75% from 1.75% to 2% in September.

After the close, Apple (NASDAQ:AAPL) shares were up 1.8% after hours after reporting $3.03 a share in fiscal-fourth quarter earnings, ahead of expectations of $2.83 a share. It also offered decent but typically conservative guidance for the first quarter, its most important quarter of the year. Shares had been flat at the close.

Before the Apple report, Facebook (NASDAQ:FB) and Starbucks (NASDAQ:SBUX) shares were rising in the after-hours market. Both companies beat revenue and earnings estimates in the third quarter.

At the same time, Twitter (NYSE:TWTR) announced it will no longer accept political advertising. Shares were lower after hours. The move was in contrast to contrast to Facebook, which is taking a hands-off approach to political advertising.

In his news conference remarks, Powell said the domestic economy is growing steadily, powered by strong job growth and rising consumer spending. The weak aspects of the economy were slipping business investment spending and falling exports, exacerbated by the ongoing U.S.-China trade fight.

He and his Fed colleagues don't see the economic prospects changing much in the foreseeable future, although he promised the Fed would act to support the economy in a crisis.

At the same time, he pronounced himself unworried the jobs market could get too hot. Unemployment is at multi-year lows, but he said, "We're not thinking about raising rates right now."

Investing.com's Fed Rate Monitor tool, which offers a view on how investors look at the situation, doesn't see a rate move before spring at the earliest.

Utilities, healthcare, real estate and technology shares led the market. The weakest S&P 500 sector was energy, with West Texas Intermediate crude down 48 cents to $55.06 a barrel. Brent crude fell 98 cents to $60.61.

Gold futures also moved $6 lower to $1,496.70 an ounce. The 10-Year Treasury yield fell to 1.782% from Tuesday's 1.835%.

General Electric (NYSE:GE), mobile navigation company Garmin (NASDAQ:GRMN), managed care company Centene (NYSE:CNC) and fiber-laser-maker IPG Photonics (NASDAQ:IPGP) were the top S&P 500 performers on the day.

Logistics company CH Robinson Worldwide (NASDAQ:CHRW), drug distributor McKesson (NYSE:MCK) fast-food company Yum! Brands (NYSE:YUM) and Devon Energy (NYSE:DVN) were among the biggest laggards.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.