19/06/2019 09:54
EST. Journalist:
Dow Extends Rally; S&P 500, Nasdaq Follow
All of Wall Street’s major indexes traded higher after the open, reflecting a fairly upbeat pre-market for Dow futures. The benchmark Dow Jones Industrial Average climbed 48.03 points, or 0.2%, to 26,513.57. The blue-chip index surged 353 points on Tuesday.
The broad S&P 500 Index of large-cap stocks opened 0.1% higher at 2,921.45. Ten of 11 primary sectors reported gains, led by industrials and information technology shares. Four of the 11 sectors gained at least 1%.
The technology-focused Nasdaq Composite Index jumped 0.2% out of the gate to reach 7,970.01.
All Eyes on the Fed
After weeks of speculation, the Federal Reserve on Wednesday is expected to signal one way or another its plans to lower interest rates this year. Although the paradigm shift appears sudden, the Fed’s dovish pivot began all the way back in January when officials realized that higher interest rates were having adverse effects on the stock market.
A prolonged tariff dispute with China has created a sense of urgency on the part of the Fed to act sooner rather than later. Chairman Jerome Powell told a conference in Chicago earlier this month that officials were monitoring the negotiations closely and would respond with appropriate monetary policy should the tariff dispute hurt economic growth.
The Federal Reserve will deliver its latest policy verdict at 2:00 p.m. ET Wednesday with eyes on the Dow in tandem. The June statement will be accompanied by quarterly projections covering GDP, unemployment and inflation.
Markets are pricing a 20.8% chance that the Fed lowers interest rates on Wednesday, according to CME Group‘s Fed Watch Tool. The likelihood jumps to 83% following the July 30-31 FOMC meeting.