Wall St. plummets after Fed signals smaller rate cut


by   |  VIEW 187
Wall St. plummets after Fed signals smaller rate cut

On Friday, the 19th of July 2019, after hovering in a positive territory for most part of the day, all three key indexes of Wall Street had botched to hold on to the gains after release of a Fed report at the later part of US trading session saying that the US Central Bank had been working on a 25-point basis rate cut at July 30th-31st’s FOMC minutes, pouring cold water on a reinvigorated market which was expecting an initiation of an aggressive rate cut policy as early as by this month.

In point of fact, New York Fed Chair’s speech later this week had reinforced belief among the investors that Fed would slash interest rate by as little as 50-point basis, however, Wall St. was expected to open lower next week following Friday’s (July 19th) Fed report amid an earnings’ season which had been hammering down giants of all sectors, as a US ban on Huawei alongside stringent regulatory hurdles for the tech giants had been casting shadows on Nasdaq, while financials were capped by frets that a lower interest rate would weigh on their earnings this year and the next.

Adding that a 25-point basis rate cut was cemented following today’s (July 19th) Fed report, a senior vice president at BB&T Wealth Management in Birmingham, Alabama, Bucky Hellwig said, “It appears that the Fed has communicated its message.

They’re basically trying to clarify their policy”. Quoting statistics, at Friday's (July 19th) market wrap-up, S&P shed 0.62 percent and Dow fell by 0.25 percent, while Nasdaq had rounded off the day 0.74 percent lower.