Dow surges 600 points, biggest rally in eight months, after Powell signals rates are near neutral

[McRocket]

'Stocks ripped higher on Wednesday after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral, a change in tone from remarks the central bank chief made nearly two months ago.

The Dow Jones Industrial Average climbed 617.70 points, or 2.5 percent, to 25,366.43, posting its biggest one-day gain since March 26. The 30-stock index also notched its second-best day of the year and is up more than 1,000 points for the week.

The S&P 500 jumped 2.3 percent to 2,743.82 as traders took the comments to mean fewer rate hikes were coming in 2019 that could derail the bull market. The Nasdaq Composite advanced 2.95 percent to close at 7,291.59 and post its best day since Oct. 25. The Dow and S&P are now positive for November after Wednesday's comeback.


"Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth," Powell said in a speech at the Economic Club of New York on Wednesday.

Robert Pavlik, chief investment strategist at SlateStone Wealth, said Powell's comments were "exactly what the market was expecting to hear." He added: "Obviously it has to do with the market reaction to his previous comments. He had to walk that back."

The "just below" language is different from the "long way from neutral" characterization he gave at the beginning of October, which helped send the S&P 500 into a correction.'

Dow surges 600 points, biggest rally in eight months, after Powell signals rates are near neutral


So the Fed - sort of - said they may be close to stopping rate rises...and the markets went nuts.

Any economy that is so completely dependent on too-low interest rates is an economy dependent on too much debt.

The fundamentals of the U.S. economy absolutely stink. They have since about 2003.

 

[Cellblock2429]

'Stocks ripped higher on Wednesday after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral, a change in tone from remarks the central bank chief made nearly two months ago.

The Dow Jones Industrial Average climbed 617.70 points, or 2.5 percent, to 25,366.43, posting its biggest one-day gain since March 26. The 30-stock index also notched its second-best day of the year and is up more than 1,000 points for the week.

The S&P 500 jumped 2.3 percent to 2,743.82 as traders took the comments to mean fewer rate hikes were coming in 2019 that could derail the bull market. The Nasdaq Composite advanced 2.95 percent to close at 7,291.59 and post its best day since Oct. 25. The Dow and S&P are now positive for November after Wednesday's comeback.


"Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth," Powell said in a speech at the Economic Club of New York on Wednesday.

Robert Pavlik, chief investment strategist at SlateStone Wealth, said Powell's comments were "exactly what the market was expecting to hear." He added: "Obviously it has to do with the market reaction to his previous comments. He had to walk that back."

The "just below" language is different from the "long way from neutral" characterization he gave at the beginning of October, which helped send the S&P 500 into a correction.'

Dow surges 600 points, biggest rally in eight months, after Powell signals rates are near neutral


So the Fed - sort of - said they may be close to stopping rate rises...and the markets went nuts.

Any economy that is so completely dependent on too-low interest rates is an economy dependent on too much debt.

The fundamentals of the U.S. economy absolutely stink. They have since about 2003.

/——/ Intrest costs are an overhead every business must cover. It drives down profits so investors bail out. It’s not complicated

 

[CrusaderFrank]

Armageddon!!

 

[McRocket]

Was The "Powell Put" Just Born? A Confused Wall Street Responds To Powell's Speech

'With Jerome Powell appearing to make a "full blown" walk back to his October 3 remarks, when in the span of 2 months the Fed Chair said we went from "long way" from the neutral rate to "just below" it, many are speculating that the "Powell Put" was just born.

But was it?

The first objection many have made - and which we noted earlier - is that what Powell actually said is that Powell's full quote is just below the "broad range of estimates" of neutral, which is not 3.00% but 2.50% to 3.50%, and therefore while 2.25%, for example, could be "just below" the bottom end of the range, it is 3 hike equivalents from the median forecast of 3.00%, and 5 from the top of the range. Indeed, Powell said nothing to suggest that he or the majority of the FOMC think they'll be able to stop at the bottom of the range, after just one more hike.'

Was The "Powell Put" Just Born? A Confused Wall Street Responds To Powell's Speech


As per usual, the markets did not look deep enough into what the Fed said.

 

[shockedcanadian]

Sounds like the threat of Trump firing him, which he in fact has jurisdiction to do for cause as I posted on here earlier; might have been conveyed to him.

Obama had 8 years of funny money, no need to increase rates so rapidly in such a short period of time just to make up for the free ride Obama received. Slow and steady, business investment over static interest rates, cheap borrowing, are key to a booming economy.

 

[Mikeoxenormous]

'Stocks ripped higher on Wednesday after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral, a change in tone from remarks the central bank chief made nearly two months ago.

The Dow Jones Industrial Average climbed 617.70 points, or 2.5 percent, to 25,366.43, posting its biggest one-day gain since March 26. The 30-stock index also notched its second-best day of the year and is up more than 1,000 points for the week.

The S&P 500 jumped 2.3 percent to 2,743.82 as traders took the comments to mean fewer rate hikes were coming in 2019 that could derail the bull market. The Nasdaq Composite advanced 2.95 percent to close at 7,291.59 and post its best day since Oct. 25. The Dow and S&P are now positive for November after Wednesday's comeback.


"Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth," Powell said in a speech at the Economic Club of New York on Wednesday.

Robert Pavlik, chief investment strategist at SlateStone Wealth, said Powell's comments were "exactly what the market was expecting to hear." He added: "Obviously it has to do with the market reaction to his previous comments. He had to walk that back."

The "just below" language is different from the "long way from neutral" characterization he gave at the beginning of October, which helped send the S&P 500 into a correction.'

Dow surges 600 points, biggest rally in eight months, after Powell signals rates are near neutral


So the Fed - sort of - said they may be close to stopping rate rises...and the markets went nuts.

Any economy that is so completely dependent on too-low interest rates is an economy dependent on too much debt.

The fundamentals of the U.S. economy absolutely stink. They have since about 2003.

I guess it is Obama's economy again.....

 

[SassyIrishLass]

So now it's Obungle's economy again?

Effin loons

 

[JGalt]

Once again: Thank you President Trump.

 

[Meathead]

'Stocks ripped higher on Wednesday after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral, a change in tone from remarks the central bank chief made nearly two months ago.

The Dow Jones Industrial Average climbed 617.70 points, or 2.5 percent, to 25,366.43, posting its biggest one-day gain since March 26. The 30-stock index also notched its second-best day of the year and is up more than 1,000 points for the week.

The S&P 500 jumped 2.3 percent to 2,743.82 as traders took the comments to mean fewer rate hikes were coming in 2019 that could derail the bull market. The Nasdaq Composite advanced 2.95 percent to close at 7,291.59 and post its best day since Oct. 25. The Dow and S&P are now positive for November after Wednesday's comeback.


"Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth," Powell said in a speech at the Economic Club of New York on Wednesday.

Robert Pavlik, chief investment strategist at SlateStone Wealth, said Powell's comments were "exactly what the market was expecting to hear." He added: "Obviously it has to do with the market reaction to his previous comments. He had to walk that back."

The "just below" language is different from the "long way from neutral" characterization he gave at the beginning of October, which helped send the S&P 500 into a correction.'

Dow surges 600 points, biggest rally in eight months, after Powell signals rates are near neutral


So the Fed - sort of - said they may be close to stopping rate rises...and the markets went nuts.

Any economy that is so completely dependent on too-low interest rates is an economy dependent on too much debt.

The fundamentals of the U.S. economy absolutely stink. They have since about 2003.

Thought you would be pleased that after a couple of weeks of the Trump economy, the Obama economy has resurged.

It's very confusing for the rest of us though.

 

[SassyIrishLass]

'Stocks ripped higher on Wednesday after Federal Reserve Chairman Jerome Powell said interest rates are close to neutral, a change in tone from remarks the central bank chief made nearly two months ago.

The Dow Jones Industrial Average climbed 617.70 points, or 2.5 percent, to 25,366.43, posting its biggest one-day gain since March 26. The 30-stock index also notched its second-best day of the year and is up more than 1,000 points for the week.

The S&P 500 jumped 2.3 percent to 2,743.82 as traders took the comments to mean fewer rate hikes were coming in 2019 that could derail the bull market. The Nasdaq Composite advanced 2.95 percent to close at 7,291.59 and post its best day since Oct. 25. The Dow and S&P are now positive for November after Wednesday's comeback.


"Interest rates are still low by historical standards, and they remain just below the broad range of estimates of the level that would be neutral for the economy — that is, neither speeding up nor slowing down growth," Powell said in a speech at the Economic Club of New York on Wednesday.

Robert Pavlik, chief investment strategist at SlateStone Wealth, said Powell's comments were "exactly what the market was expecting to hear." He added: "Obviously it has to do with the market reaction to his previous comments. He had to walk that back."

The "just below" language is different from the "long way from neutral" characterization he gave at the beginning of October, which helped send the S&P 500 into a correction.'

Dow surges 600 points, biggest rally in eight months, after Powell signals rates are near neutral


So the Fed - sort of - said they may be close to stopping rate rises...and the markets went nuts.

Any economy that is so completely dependent on too-low interest rates is an economy dependent on too much debt.

The fundamentals of the U.S. economy absolutely stink. They have since about 2003.

Thought you would be pleased that after a couple of weeks of the Trump economy, the Obama economy has resurged.

It's very confusing for the rest of us though.

They're too stupid to realize they are being mocked

 

[Darkwind]

Tomorrow it will give back 450 of those points.

Looks like the markets are starting to get more volatile than what is reasonable.

 

[ABikerSailor]

For all you people who are confused as to whose economy this is? It's simple.............when Trump got his tax cuts passed, that is the point where it became his economy.

It was further cemented as Trump's economy when he enacted his tariffs and started his trade war.

This has been Trump's economy since Feb.