On Tuesday, the 4th of June 2019, all three key indexes of Wall St. had snowballed, putting an end to a losing streak despite growing geo-political worries, after Fed Chair Jerome Powell had kept the door open for a future interest rate cut.
At a Tuesday (June 4th) speech, Fed Chair Jerome Powell was quoted saying that the US Central Bank would act “as appropriate” in order to address trade spat risks, a day after the St. Louis Fed Chief, James Bullard had said that a rate cut might have warranted soon, which eventually added to investors’ optimism of a near-term interest rate slash.
Besides, it appeared for the moment being that the US President Donald Trump was going to get his long-yearned rate cut, although not in the way the market might have been expecting, while investors had been betting over for at least a rate cut in 2019 and two over the next year to turn it back to zero.
Addressing optimism over a possible rate cut later part of the year, a chief market strategist at TD Ameritrade in Chicago, JJ Kinahan said, “Given the fact there’s more than a 95 percent probability of a rate cut baked into fixed income it’s nice to hear the Fed say it will wait for the economy to tell it what to do.
If the economy slows due to tariffs, the Fed would consider cutting rates”. Quoting statistics, at Tuesday’s market wrap-up, Dow mushroomed more than 2 percent to 25,332.18 after concluding flatlined yesterday, S&P snowballed by 2.14 percent to 2,803.27 after winding up 0.3 percent lower a day earlier, while Nasdaq was skyrocketed by 2.65 percent to 7,527.12, heading off some of its heavy losses witnessed due to trade tensions later last week.