Skip to comments.US STOCKS-S&P 500 hits record high as Fed signals rate cuts
Posted on 06/20/2019 9:20:29 AM PDT by SeekAndFind
* Fed sees case building for rate cuts this year
* Financials fall; Energy up most among S&P sectors
* Carnival Corp slides on 2019 profit warning
* Indexes up: Dow 0.68%, S&P 0.59%, Nasdaq 0.59% (Updates prices, adds comments)
By Shreyashi Sanyal
June 20 (Reuters) - The S&P 500 index touched an all-time high on Thursday, after the Federal Reserve indicated that it could cut interest rates as early as July to combat growing risks to global and domestic growth.
The U.S. central bank left rates unchanged at the end of its two-day June policy meeting on Wednesday, but pledged to "act as appropriate" to sustain economic health.
Wall Street's main indexes have gained in recent weeks on expectations of a rate cut and hopes of a revival of trade talks between the United States and China at the Group of 20 meeting next week in Osaka, Japan.
The benchmark S&P 500 index, which has risen 7% so far in June and is on track to recoup its previous month's losses, hit an intraday record high of 2,956.20 on Thursday.
"It was always going to be difficult for the Fed to live up to high market expectations. While the bar was set high, policymakers appear to have cleared it with ease while also leaving themselves with plenty of outs," said Craig Erlam, senior market analyst at OANDA in London.
"It's clear that the G20 meeting next week will either give them (the Fed) that out or make the decision to cut quite straightforward."
Financial stocks dropped 0.42%, while the energy index jumped 2.16%, the most among all 11 major S&P sectors, as oil prices surged over 4% on renewed tensions in the Middle East after Iran shot down a U.S. military drone.
(Excerpt) Read more at finance.yahoo.com ...
He predicted a new record high in the S&P 500.
“He predicted a new record high in the S&P 500. “
Futures were indicating a new high.
I bought into the Vanguard S&P 500 index fund just in time to take a bump before the latest dump. I’m back in the sunshine again with an appreciation of the fact the index is made up totally of stocks. There are no bonds to cushion a fall, is in my other mutual funds. I knew this going in, but it was still breath taking to watch the gyrating.
All Hollyweirdos who publicly decry the President ought to be banned from investing in the stock market.
The rates should have never been raised that high to begin with.
I can understand their nervous need to raise rates. I just think it’s premature and harmful to the market until after the election.
The problem with continuing zero per cent interest is that it leaves nothing in the piggy bank to spark a revival out of the next recession. Lowering interest rates won’t help next time if there is no interest to lower.
i am noticing that software and software IT funds are doing very well, much better than even the S&P index (looking at the past 3 years only). what do you all think about such funds?
BFOCX Berksire focus
FBSOX Fidelity select IT services
this one seems to be doing well also
CPOAX Morgan Stanley insight fund class A
what mutuals have a big slice of Amazon? that might be a way to go. I am bullish on Amazon but maybe don’t want to get locked into having to monitor any one stock every moment.
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