Friends
As expected, the Fed lowered the Fed Funds rate by a quarter of a percent today. Also, as expected, the market had already priced it in. Whether needed or not (that’s a whole other debate), the rate cut and the subsequent press conference did not bring comfort to the bulls. Fed Chair Powell was less than convincing in his press conference, first inferring that this may be a case of one and done, then walking that back a bit to infer that there could be additional rate cuts coming- or not (data dependent baby).
As for stocks, as mentioned the whole afternoon didn’t sit well with market participants as stocks tumbled in the afternoon. By the close, the Dow Jones Industrial Average was down 333 points to finish the day at 26,864. The S&P 500 was down 32 points to close at 2,980. Gold was down $12 to trade at $1,423 per ounce, while oil was up $.01 to trade at $58.06 per barrel WTI.
So, now we have the Fed move behind us as well as a good portion of earnings season. Today’s market reaction should not come as a surprise. What develops over the next several weeks will be interesting. Is the economy slowing drastically? Will earnings, though better than expected, continue to trend downward? Is the Fed done or have we only begun a new easing cycle? We have a lot to sort out in the second half of 2019. We’ll be there, keeping you informed as it unfolds.
Have a nice evening everyone.
