Wall St. gives up gains after Fed Chair wipes out rate-cut hopes

by   |  VIEW 160
Wall St. gives up gains after Fed Chair wipes out rate-cut hopes

On Wednesday, the 1st of May 2019, all three key indexes of Wall St. winded down the day deep in the red, after Fed Chair Jerome Powell had evaporated rate-cut hopes, saying that the Fed policymakers would now look closer to economic data linked to inflation growth to decide whether to cut or keep interest rate on hold this year.

On Wednesday’s (May 1st) policy statement, Fed holds the interest rate steady as expected and strokes an alarming tone on inflation outlook, while Powell said at a post-FOMC interview with the reporters that further decline in inflation might be witnessed in a near-term outlook due to transitory factors, which simply had tottered investors’ bet that the Fed might be slashing interest rate later this year.

Nevertheless, Wednesday’s (May 1st) US market had begun with an upbeat tone with optimisms that Fed might have slashed interest rate, however, Fed Chair Powell’s speech had poured scorns over the investors belief and started a sharp sell-off at late US trading hours.

At Wednesday’s market wrap-up, the Dow had lost 0.61 percent to 26,430.14, while S&P 500 had failed to extend its all-time-high rally, ended the day down by 0.75 percent to 2,923.73. Meanwhile, Nasdaq was heavily plunged by 0.57 percent to 8,049.64 despite an upsurge of Apple Inc.

share price, which had pushed its market cap back towards magical $1 trillion value. Wednesday’s (May 1st) sell-off was broad-based, as every sector of S&P 500 and Dow had rounded off the day dashed in a bloodbath.