NewsBreak: Stocks Move Higher After Fed Cuts, Powell Assures

Investing.com

Published Oct 30, 2019 02:25PM ET

Updated Oct 30, 2019 03:21PM ET

Investing.com – Stocks were rising midafternoon Wednesday after the Federal Reserve's latest interest-rate cut and what the market took to be encouraging words from Fed Chairman Jerome Powell.

  • The S&P 500 was up 0.25% at 3:12 PM ET (19:12 GMT), with the {{169|Dow Jones industrials} up 0.32%. The NASDAQ Composite was up 0.26%, while the Nasdaq 100 Index, dominated by big technology stocks, was up 0.38%. Utilities, health and technology stocks were the market leaders.
  • The move higher seemed triggered by Powell's comment that, while the central bank looks content to leave rates alone for now, "We're not thinking about raising rates right now" and also his benign comments on inflation.

  • The Fed cut its federal funds rate to 1.5% to 1.75%. It was the Fed's third rate cut in as many meetings and came on worries about global economic growth issues and low inflation. Its description of the domestic economy indicated steady growth in consumer spending and jobs, with low interest rates convincing consumers to accelerate home-buying plans. Weak business investment spending and exports remain a concern. A resolution to trade disputes would help business confidence, Powell said.

  • The Fed did not indicate if it will cut rates again at, say, its December meeting. Rather it wants to see what the economic data show. Investing.com's Fed Rate Monitor Tool puts the odds of no cut at 80%.

  • The U.S. dollar was down, unsurprisingly. The dollar index was down 0.2% and EUR/USD climbed 0.3%.

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    Written By: Investing.com

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