Day Traders Diary
The major averages closed higher once again after the Federal Reserve indicated it will likely not raise rates in 2020, removing the fear among investors that it would repeat a mistake it made last year by tightening monetary.
The Dow Jones Industrial Average rose 29 points, or 0.1% to close at 27,911. The S&P 500 climbed 0.3% to 3,141 while the Nasdaq Composite advanced 0.4% to 8,654.
The Fed kept interest rates unchanged on Wednesday, following three decreases in a row. Fed Chair Jerome Powell said in a news conference the central bank would have to see a persistent rise in inflation before hiking rates once again. Treasury yields fell broadly. The benchmark 10-year rate slid to 1.781% while the 2-year yield fell to 1.611%.
In corporate news, Home Depot fell 1.8% on light 2020 guidance. Chevron was down 1.4% after writing down $11 billion in gas assets for the quarter. Boeing fell as much as 2% before recovering as the FAA stated they will not let the 737 Max fly until next year.
Tomorrow we will get the ECB policy decision and UK election along with a possible new round of tariffs on Chinese imports coming this Sunday. The trade uncertainty presumably had more influence on sentiment than interest rates at this point.All comments contained herein are for informational purposes only, and should not be considered as a solicitation to buy or sell any security. The firm does not guarantee the accuracy or completeness of the information or make any warranties regarding results from it's usage.