Posted on 07/10/2024 7:03:04 PM PDT by SeekAndFind
US stocks again soared to fresh all-time highs on Wednesday as Jerome Powell's remarks on Capitol Hill buoyed rate-cut hopes and Big Tech stocks piled on the gains.
The S&P 500 (^GSPC) rose 1% for a 37th record close this year, breaching 5,600 for the first time. The Dow Jones Industrial Average (^DJI) jumped 1.1%, while the tech-heavy Nasdaq Composite (^IXIC) gained 1.2%. The S&P and Nasdaq were each higher for the seventh straight session.
Tech's biggest names continued to rise, powering the gains of the broader market. The AI darling Nvidia (NVDA) advanced more than 2%, while Apple, (AAPL), Microsoft (MSFT), and Google (GOOG, GOOGL) each gained more than 1%.
Bets on interest rate cuts have helped keep stocks roaring as signs of slowing in the US economy pile up.
Wall Street also looked to Washington for more optimism. In his semiannual testimony to Congress, Powell hinted the stage is almost set for lowering interest rates from two-decade highs, pointing to a cooling in inflation and in the jobs market. He also cautioned that keeping rates elevated for too long could weaken the economy, giving hope to rate-cut-hungry investors.
But a key test for stocks and rate-easing prospects lies ahead in the crucial consumer inflation report due Thursday. While a cooler reading will cement the likelihood of a Fed policy shift in September, a too-cool print could revive concerns about a recession and the labor market.
(Excerpt) Read more at finance.yahoo.com ...
Save Biden algorithm?
No six rate cuts this year? They’ll cut rates with markets are at oir near all timer highs when pigs fly.
fwiw I did notice that on June 28th, solar stocks got crushed in response to the debate.
I still believe that some of this is anticipation of President Trump winning. The elections are well within the time window of the forward looking economic indicators at this point.
That settles it I’m votin’ for Biden.
P. W. G.
No free markets.
You’ve got SCOTUS reeling in Chevron helping propel oil & gas; pro-energy / pro-America Trump looking better all the time; and the EV market getting saturated with virtue-signalers. Lots of good things lining up right now.
I’m sticking with most of my portfolio in a mixture of CDs and Short Term US treasuries till after the election, probably after Jan 20th. I’ll take the risk free 5%+ for now while keeping about 1/7 of my portfolio in a couple of more aggressive tech and large cap funds. Still have worries about a black swan event either something staged by deep state, or something done by bad actors who have crossed our borders.
We are very aggressive with about 60% in equities and most of that in large cap US.
That’s an excellent point about Chevron. It completely slipped my mind. Good job.
The timber industry is another one that should benefit that I’ve yet to see even mentioned.
Timber, agriculture, mining/minerals, oil, gas, coal all stand to benefit.
The market rally since last October has got to be one for the record books. It surely seems unstoppable.
Well, I’m already retired, so staying ultra conservative especially during election year. Hope to go to something like a 50/50 split when I feel the country is in better hands. I manage my own portfolio, always have and have done fairly well. Invested in communications and technology funds during the 90s and early 2000s.
We are retired in our early 70s and could not stomach the pitiful rates of return in fixed investments. We’ve been rolling the dice and it’s paid off handsomely for us so far.
Folks can't comprehend the amount of money that has been thrown from helicopters going back to Bush, and the amount of gov interventions and 'backstops'. Good luck affording anything going forward. They only way to keep pace is to play the investment game.
Panic will be worse than bombs ân bullets.
Obama canât wait to see American blood in the streets and our cities devastated.
I wish I had money to play with. All I check is the price of oil. That tells me when the price of gas will go down.
Go woke go broke, right?
Almost a 50% gain since October 2023.
Nvidia (NVDA), the AI chip company, has played a big part.
Re: Short Term US Treasuries
Nice selection.
The US Treasury 1 Month has been paying over 5% (annual rate)
since May 2023.
You have to go way out on the Risk Curve to find that kind of return on corporate bonds.
plan to get them voting and if it fails its a setup for trump while president
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