On Monday, the 17th of June 2019, all three key indexes of Wall Street had ended higher, largely supported by the gains of Facebook, Apple and Amazon, as investors seemed to be acting cautiously ahead of a Fed decision on interest rate cut.
Nonetheless, sources revealed that the US central bank was expected to keep the borrowing cost unchanged at its two-day long policy meeting scheduled to start off by Tuesday (June 18th), but investors had been awaiting to listen how dovish policymakers would get amid a worsening US-China trade war and President Trump’s repeated call for an interest rate cut in context of a slowing economy.
In fact, while investors were expecting a rate cut as early as by July 2019, S&P 500 had added more than 5 percent so far this month after terribly tumbling on May over China tariff hike. Adding that a flurry of disdainful US economic data would prompt Fed to lay the groundworks for a rate cut later this year, a chief investment officer at Cresset Wealth Advisors in Chicago, Jack Ablin said, “The Empire manufacturing numbers that came out were dreadful.
We’re back to that the idea that bad news is good news, with the Fed meeting around the corner, and that the Fed will respond with lower rates”. Quoting statistics, on Monday (June 17th) market closure, the Dow was up by 0.09 percent to 26,112.53,and S&P 500 had added 0.09 percent to 2,889.67, while Nasdaq had led the charges with a gain of 0.62 percent to 7,845.02.