U.S. Stocks Rise After Fed?Minutes
Mario J. Payne, CFP?
Certified Financial Planner? | Investment Management | Dave Ramsey SmartVestor | Executive Board Member | Veteran
On Wednesday, stocks in the U.S. moved higher, with both the S&P 500 and Dow Jones reaching new highs. This came after the Federal Reserve shared notes from their September meeting, and ahead of important reports on inflation and company earnings. Investors are paying close attention to how these factors will affect the market in the next few weeks.
Fed’s Rate Cut and Market Response
The Fed’s meeting notes showed that many officials supported a half-point rate cut. But they also agreed that this didn’t mean the Fed would have to keep cutting rates at the same pace in the future. Right now, traders believe there’s a 79% chance of a 25-basis-point cut soon, with a smaller chance that rates will stay the same. This brought relief to investors, who were worried about bigger changes.
Google Faces Government Pressure
While the market was doing well, Alphabet (Google’s parent company) dropped 1.5% after the U.S. Department of Justice said it might push to break up parts of Google’s business. This could involve separating Google’s Chrome web browser and Android operating system to limit its power in online searches.
What’s Next: Inflation and Earnings Reports
Investors are feeling hopeful after a strong September jobs report. Now, they’re waiting for new reports on inflation and company earnings, which will give more clues about the economy and future decisions by the Federal Reserve.
Conclusion
As investors review the Fed’s notes and wait for more data, there’s a sense of optimism. The market seems ready to keep growing, but challenges like inflation and tech regulations could still impact its direction.
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