• Terms & Condition
  • Privacy & Policy
Financial Freedom and education
Advertisement
  • Home
  • NEWS
    • All
    • Business News
    • Company news
    • general finance
    • UK Stock Market
    • US stock market
    RealReal (REAL) extends rally after weighing analysts

    RealReal (REAL) extends rally after weighing analysts

    USA calls for negative Covid-19 test for international air travelers

    USA calls for negative Covid-19 test for international air travelers

    Saturday Papers: US companies scurry back to IPO market

    Wednesday Papers: Johnson clashes with NHS chiefs over speed of vaccine adoption

    https://www.marketwatch.com/story/easyjet-lands-1-87-billion-state-backed-loan-as-it-looks-to-ease-covid-cash-crunch-11610372720?mod=united- kingdom

    https://www.marketwatch.com/story/easyjet-lands-1-87-billion-state-backed-loan-as-it-looks-to-ease-covid-cash-crunch-11610372720?mod=united- kingdom

    Facebook and other tech giants could soon face a flood of court cases in Europe over data privacy

    Facebook and other tech giants could soon face a flood of court cases in Europe over data privacy

    Netflix reportedly worked on “Spatial Audio” for AirPods users

    Netflix reportedly worked on “Spatial Audio” for AirPods users

    • Company news
    • Business News
    • US stock market
    • general finance
    • UK Stock Market
    • pricing company
  • Trading 212
  • UK ISA
  • STOCK MARKET FOR BEGINNERS
No Result
View All Result
  • Home
  • NEWS
    • All
    • Business News
    • Company news
    • general finance
    • UK Stock Market
    • US stock market
    RealReal (REAL) extends rally after weighing analysts

    RealReal (REAL) extends rally after weighing analysts

    USA calls for negative Covid-19 test for international air travelers

    USA calls for negative Covid-19 test for international air travelers

    Saturday Papers: US companies scurry back to IPO market

    Wednesday Papers: Johnson clashes with NHS chiefs over speed of vaccine adoption

    https://www.marketwatch.com/story/easyjet-lands-1-87-billion-state-backed-loan-as-it-looks-to-ease-covid-cash-crunch-11610372720?mod=united- kingdom

    https://www.marketwatch.com/story/easyjet-lands-1-87-billion-state-backed-loan-as-it-looks-to-ease-covid-cash-crunch-11610372720?mod=united- kingdom

    Facebook and other tech giants could soon face a flood of court cases in Europe over data privacy

    Facebook and other tech giants could soon face a flood of court cases in Europe over data privacy

    Netflix reportedly worked on “Spatial Audio” for AirPods users

    Netflix reportedly worked on “Spatial Audio” for AirPods users

    • Company news
    • Business News
    • US stock market
    • general finance
    • UK Stock Market
    • pricing company
  • Trading 212
  • UK ISA
  • STOCK MARKET FOR BEGINNERS
No Result
View All Result
Financial Freedom and education
No Result
View All Result
Home News1 US stock market

Dow Futures Crash Despite Fed’s Bullish Stock Market Assist – What Gives?

financialfe by financialfe
June 11, 2020
in US stock market
0
Dow Futures Crash Despite Fed’s Bullish Stock Market Assist – What Gives?
0
SHARES
1
VIEWS
Share on FacebookShare on Twitter


  • Dow Jones Industrial Average (DJIA) futures plummeted 500 points after ‘gloomy’ Fed comments.
  • Despite a negative economic outlook, chairman Jay Powell’s response was incredibly supportive for the stock market.
  • Commentators say traders might shrug off the ‘down day’ and we’ll see another leg higher afterwards.

The stock market took a turn for the worse this morning as traders digest last night’s Federal Reserve statement. Dow Jones Industrial Average (DJIA) futures point to a huge 500 point slide on Thursday.

But why? Powell’s commitment to hold rates at zero for two years and continue QE is mega bullish for assets. CNBC’s Guy Adami said traders might take a day or two for the market to read between the lines.

I’ve seen this movie before… [After a Fed statement] you have a down day in the market only to be followed by some huge monster rip on the next day in some sort of delayed reaction.

Dow futures plummet 500 points

In a vicious overnight selloff, Dow futures shed 500 points (1.9%). The correction is perhaps a healthy retrace after a euphoric rally that lured in a wave of retail investor FOMO.

Dow Jones Industrial Average (DJIA) futures slowly collapsed overnight after the Fed comments. Source: Yahoo Finance

S&P 500 futures were down 1.4% and even the unstoppable Nasdaq took a breather, with futures down 1.1% after closing at record highs yesterday.

Powell delivered exactly what investors wanted

Here are the only words that mattered to stock traders in Powell’s statement last night.

We’re not thinking about raising rates. We’re not even thinking about thinking about raising rates.

This is as good as it gets for Federal Reserve commitments. You almost never get a two-year forecast on rates from the Fed chairman himself. It just doesn’t happen.

Even Former Federal Reserve Bank of Atlanta President Dennis Lockhart said he’s rarely seen a central banker so resolutely committed to supporting the markets:

[Powell was] even a bit more animated than typically a central banker is in emphasising that the Fed is going to stay the course here.

There should be no question, he added, that Powell will be there with stimulus when required. That’s as bullish as it gets for the market.

The stock market isn’t the economy

Most news outlets were quick to jump on Powell’s ‘gloomy’ economic forecast as he admitted that recovery would take a long time. Some traders may initially have panicked at this. Karen Finerman at Metropolitan Capital admitted the economic reading was:

A little more downbeat than I thought.

But if we’ve learnt one thing since the March selloff, it’s that the stock market isn’t the economy. The stock market is a discounting mechanism that looks to the future. And Powell just delivered a two-year, zero-interest, crystal ball to the financial markets.

Whether or not it’s the right policy, CNBC’s Tim Seymour said this is what investors like to see:

As a market participant, this is just what we’ve been fed for the last five years… As long as the Fed is in here like this, this is exactly what you get.

Dow Jones leaders and laggards

Boeing (NYSE:BA) continues yesterday’s slump, dragging 7% in premarket trading. The renewed threat of a longer ‘return-to-normal’ is hampering travel stocks, airlines, and retailers this morning.

Financials also suffered, with Goldman Sachs (NYSE: GS) and JP Morgan Chase (NYSE: JPM) down 3.5% each.

Even tech stocks are struggling in today’s selloff. After reaching new all-time highs yesterday, Apple (NASDAQ: AAPL) and Microsoft (NYSE: MSFT) are cooling off, down 1% and 1.5% respectively.

This article was edited by Samburaj Das for CCN.com.



Source link

Previous Post

Free exchange – Economic research documents black Americans’ struggle for equality | Finance & economics

Next Post

London stocks fall for third straight day, Fed on the radar

financialfe

financialfe

Next Post
Johnson drawing up economic recovery bill – Daily Mail

London stocks fall for third straight day, Fed on the radar

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Stay Connected test

  • 79 Followers
  • 93.2k Subscribers
  • 22.9k Followers
  • 99 Subscribers
  • Trending
  • Comments
  • Latest
Free Exchange – Can Too Many Smart People Be a Dangerous Thing? | Finance & Economy

Free Exchange – Can Too Many Smart People Be a Dangerous Thing? | Finance & Economy

October 22, 2020
The three pillars – why real estate prices continue to rise despite the coronavirus pandemic | Finance & Economy

The three pillars – why real estate prices continue to rise despite the coronavirus pandemic | Finance & Economy

September 30, 2020
Metamorphosis – How Ping An, an Insurer, Became a Fintech Super App | Finance & Economy

Metamorphosis – How Ping An, an Insurer, Became a Fintech Super App | Finance & Economy

December 5, 2020
Airbnb executive quit on concerns that it shared too much data with China

Airbnb executive quit on concerns that it shared too much data with China

November 22, 2020
Trading 212 For Beginners App Review

Trading 212 For Beginners App Review

2
TRADING 212 TIPS – STOCK BUYING

TRADING 212 TIPS – STOCK BUYING

2
British Steel risks collapse with 25,000 jobs at stake By Reuters

British Steel risks collapse with 25,000 jobs at stake By Reuters

0
RealReal (REAL) extends rally after weighing analysts

RealReal (REAL) extends rally after weighing analysts

0
RealReal (REAL) extends rally after weighing analysts

RealReal (REAL) extends rally after weighing analysts

January 17, 2021
USA calls for negative Covid-19 test for international air travelers

USA calls for negative Covid-19 test for international air travelers

January 16, 2021
Saturday Papers: US companies scurry back to IPO market

Wednesday Papers: Johnson clashes with NHS chiefs over speed of vaccine adoption

January 16, 2021
https://www.marketwatch.com/story/easyjet-lands-1-87-billion-state-backed-loan-as-it-looks-to-ease-covid-cash-crunch-11610372720?mod=united- kingdom

https://www.marketwatch.com/story/easyjet-lands-1-87-billion-state-backed-loan-as-it-looks-to-ease-covid-cash-crunch-11610372720?mod=united- kingdom

January 16, 2021

Recent News

RealReal (REAL) extends rally after weighing analysts

RealReal (REAL) extends rally after weighing analysts

January 17, 2021
USA calls for negative Covid-19 test for international air travelers

USA calls for negative Covid-19 test for international air travelers

January 16, 2021
Saturday Papers: US companies scurry back to IPO market

Wednesday Papers: Johnson clashes with NHS chiefs over speed of vaccine adoption

January 16, 2021
https://www.marketwatch.com/story/easyjet-lands-1-87-billion-state-backed-loan-as-it-looks-to-ease-covid-cash-crunch-11610372720?mod=united- kingdom

https://www.marketwatch.com/story/easyjet-lands-1-87-billion-state-backed-loan-as-it-looks-to-ease-covid-cash-crunch-11610372720?mod=united- kingdom

January 16, 2021
Financial Freedom and education

We bring you the best Premium WordPress Themes that perfect for news, magazine, personal blog, etc. Check our landing page for details.

Follow Us

Browse by Category

  • Business News
  • Company news
  • Creating My Stock Portfolio
  • general finance
  • News1
  • STOCK MARKET FOR BEGINNERS
  • Trading 212
  • UK ISA
  • UK Stock Market
  • Uncategorized
  • US stock market

NewsLetter

  • Terms & Condition
  • Privacy & Policy

© 2020 financial freedom and education

No Result
View All Result
  • Trading 212
  • UK ISA
  • STOCK MARKET FOR BEGINNERS
  • News
    • US stock Market
    • Company News
    • General Finance
    • Business News
    • Company News
    • UK Stock Market

© 2020 financial freedom and education