- The S & P 500 index reported its first daily record on May 1
- Gold plunged 3% to $ 1,388.60 an ounce, reaching 5 -Year Peak 19659002] Slack Technologies Slack Technologies Company to Be Included in the NYSE List
stock indexes at the end of the morning on Thursday prolonged their earnings to a fourth consecutive day, testing new records but out of their best levels after the Federal Reserve announced that a policy relaxation could be expected.
How do benchmarks work?
DJIA, + 0.65%
SPX, + 0.55%
earned 21 points, or 0.7%, to 2947, trading above the record on April 30 at 2945.83 and touched a new peak during the day at 2,956.20 earlier in the session, May 1 day recording. Meanwhile, the Nasdaq Composite Index
COMP, + 0.53%
climbed 62 points, or 0.8%, trading within 2% of its closing from May 3 to 8.164.
What is the market?
Fed Chairman Jerome Powell on Wednesday strongly suggests that the central bank will lower reference rates, currently ranging from 2.25% to 2.50%, in the coming weeks if the economic outlook is worsened by US- China shows no signs of improvement.
"The case for a slightly more favorable policy has increased," Powell said at a press conference Wednesday to discuss the long-awaited decision of the Open Market Committee. Politicians kept interest rates unchanged, as expected, but removed the word "patient" from its updated political declaration, assuming it was ready to act soon. Although the markets are widely expected to respond to the growing signs of stress in the economy, the central bank's stance on freer monetary policy is seen as providing a serious reason for the continued increase in stocks, despite concerns about the economic downturns problems. The Federal Reserve has remained optimistic about the forecast, but said inflationary pressure has declined, forcing it to reduce its inflation forecast in the period 2019 to 1.5% from 1.8% below the 2% target. At the same time, the estimate of its gross domestic product remains 2.1%.
Curiously low inflation is often quoted by FOMC members as one of the key reasons for doubts about the path of monetary policy. The Federal Reserve will meet between July 30 and July 31, while President Donald Trump is expected to talk with Chinese President Cai Dingping at the end of the upcoming meeting of the 20 countries of well-developed countries in Japan in late June. to reach.
See : Recapitulation of the Fed's decision and Powell's press conference
The rogue rhetoric by central bank politicians around the world this week has helped send commodity prices, particularly gold, high rates. increased expectations that interest rates that may undermine bar appetite will be reduced.
The Bank of Japan Haruyko Kuroda and the central bank of England on Thursday joined the bankers' chorus, including Powell and European Central Bank President Mario Draghi, signaling the readiness to increase incentives if global risks are at least partly stimulated by trade ,
BOJ's Kuroda said, "Of course, we will consider expanding the incentives without hesitating," he told a news conference, according to Reuters.
What are the data in focus? only 0.3 after registering a four-month high of 16.6 in the previous month. Any reading above zero indicates improved conditions. Economists surveyed by MarketWatch were expecting reading.
Initial unemployment claims, a rough way to measure layoffs, have fallen from 6,000 to 216,000 in the seven days ended June 15, the government said.
What do the strategies say? rising gold and oil prices. Strengthening geopolitical tensions continues to excite safety, while hopes of lowering interest rates dominate stock markets, "said Peter Kardillo, chief market economist at Spartan Capital Securities. Powell's press conference [on Wednesday] showed some reluctance, but it seems the markets are sure the Fed will cut in July. If worse than expected, worse than expected, in the coming weeks, there will be a 50-point drop in demand in July, "says Edward Moya, senior market analyst at Oanda.
Which stocks are in focus
Slack Technologies Inc .
WORK, + 0.00%
is set to make its debut on the New York Stock Exchange in an unusual direct listing of the company software company. Here's what you need to know. It was expected that the direct entry would be hit immediately before 1 am Eastern time zone.
How are other assets traded?
Before the US markets opened on Thursday, the Hang Seng index in Hong Kong
HSI, + 1.23%
rose 1.2% and the Chinese Shanghai Composite Index
SHCOMP, + 2.38%
increased by 2.4%. Japanese Nikkei 225
Meanwhile, NIK, + 0.60%
closed 0.6%, while in Europe Stoxx Europe 600
SXXP, + 0.50%
traded 0.6% higher.
Futures of gold
GCQ19, + 2.96%
meanwhile rose 3% to its highest level in 2013 to $ 1,388.60 an ounce, while the 10-year financial statement
hit a yield below 2% and the US dollar measured by ICE U.S.
declined by 0.5% to 96.67.
Crude Oil Prices
CLU19, + 5.66%
grew by more than 5% against the backdrop of geopolitical tensions in the Middle East. Iran claims to have dropped a US unmanned airplane into its airspace, and Trump has released a mysterious tweet that Iran " has made a big mistake ".
The "suffocating point" in focus while Iran launches American drunkenness against a backdrop of rising tension