Stock Market News: August 1, 2019

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "US stocks recovered most of & nbsp; Wednesday's loss & nbsp; after the Federal Reserve on Wednesday indicated that it was not on a steady path toward continuing lower rates, the signal had initially sent risk conditions as investments as investors shrank to recalibrate to the prospect of less accommodative monetary policy than previously expected. "data-reactid =" 1[ads1]5 "> US stocks recovered most of Wednesday's losses after the Federal Reserve on Wednesday indicated it was not on a particular path toward continuing lower prices. The signaling had originally sent a risk water capsule as investors shrank to recalibrate to the prospect of less accommodating monetary policy than previously expected.

Here were the most important movements in the market, from 12:12. ET:

• S&P 500 (^ GSPC): + 0.95%, or 28.19 points

• Dow (^ DJI): + 0.96%, or 256.98 points

• Nasdaq (^ IXIC ): + 1.47%, or 119.74 points

• 10-year Treasury Rate (^ TNX): -5.7 bps to 1.964%

• US Dollar Index (DX-Y.NYB): + 0, 1% to 98.62

Although the Federal Reserve delivered a 25 basis point cut, its members stopped short of expecting further cuts in the short term. Two members of the committee disliked the decision to reduce interest rates and agreed to keep borrowing costs unchanged.

<p class = "canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8em) – sm" type = "text" content = "The monetary policy decision and subsequent notes from the Fed- leader Jerome Powell led many traders to characterize political traits as a " hawkish cut ." After weeks of relatively low volatility trading, the S&P 500 and Dow posted their biggest draw patch since May, and the US Dollar increased President Donald Trump, a vocal critic of the Fed under Powell who repeatedly asked for lower rates, weighed in with & nbsp; a Twitter post that said "Powell let us down." -reactid = "24"> Monetary policy decision and subsequent remarks by Fed leader Jerome Powell led many traders to characterize political moves as a "hawkish cut." After weeks of relatively low volatility trading, the S&P 500 and Dow's biggest move was down since May and the US dollar rose, President Donald Trump, a vocal critic of the Fed under Powell who has repeatedly asked for lower rates, weighed in with a Twitter post saying, "Powell let us down."

Powell described the interest rate cut "as a mid-cycle adjustment, and the markets is concerned that there will not be much more relief, says Kit Juckes, global head of FX strategy at Societe Generale, in a note. "Show further weakness in the stock market and additional dollar strength."

However, other economists took the Fed's non-mandatory signaling as a strategic move to temper market expectations and provide a buffer for officials to remain computer-dependent in making their next decision following their September meeting.

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Wednesday's "Fed events may have given risks to market some indigestion, but they also bought the Fed some more flexibility during the next FOMC meeting," JPMorgan wrote – economist Michael Feroli in a note. "We are still looking for another relief in September, and still believe that … the September conversation depends on all the data. While the move [Wednesday’s] was motivated by global growth, trade policy and inflation, we expect that September's decision will also depend on domestic growth. ”

<p class =" canvas-atom canvas-text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm "type =" text "content =" As of Thursday morning, & nbsp marked ; markets in & nbsp; about 50-50 probability of either 25 basis point interest rate cut or no change in key rates after the Fed meeting in September, according to data from the CME Group. a little more towards a new interest rate cut, but as the morning wore on. "data-reactid =" 39 "> As of Thursday morning, markets priced with about 50-50 probability of either a 25-point interest rate cut or no change in key rates after the Fed's September meeting , according to data from CME Group. However, the futures markets showed participants a little more towards another interest rate cut as the morning wore on.

Economic data flow

The first of the financial data releases ahead of the Fed's next meeting came together on Thursday, with new reports showing continued strength in the labor market and continuous industry weakness.

<p class = "Canvas Atom Canvas Text Mb (1.0em) Mb (0) – sm Mt (0.8 em) – sm" type = "text" content = "New unemployment requirements increased slightly more than expected to 215,000 for the week ending July 27, according to & nbsp; government data. & nbsp; However, the four-week moving average dropped to 211,500, indicating ongoing tightness in the labor market. July Friday employment report, on the heels of a & nbsp; stronger than expected report & nbsp; from ADP / Moody's & # 39; s Private Salary Survey. "data-reactid =" 42 "> New unemployment requirements increased slightly more than expected to 215,000 for the week ending July 27, according to government data. However, the four-week moving average fell to 211,500, indicating ongoing tightening in the labor market. The Bureau of Labor Statistics is releasing its July jobs report, on the heels of a stronger-than-expected report from ADP / Moody's & # 39; s July private payroll survey.

<p class = "canvas atomic canvas text Mb (1.0 cm) Mb (0) – sm Mt (0.8 cm) – sm" type = "text" content = "Meanwhile, the US production activity to the lowest level in a decade in July as anemic production increases and soft demand weighed on growth, according to an edition & nbsp; Thursday from IHS Markit. "data-reactid =" 43 "> I Meanwhile, US manufacturing activity dropped to the lowest level in a decade in July as anemic production increased and soft demand weighed on growth, according to a release Thursday from IHS Markit.

IHS Markit's Head of Purchasing Responsible Index (PMI) dropped to 50.4 for the month, just a hair above the neutral 50 level to indicate expansion.

"The US industry has seen the sharpest decline since 2009, suggesting that the commodity-producing sector is on track to serve as a significant drag for the economy in the third quarter," said Chris Williamson, chief economist at IHS Markit, in a statement. "The deterioration in the survey's production index indicates that production production is declining at an annual rate of over 3%."

History continues