After all the slump in the stock market in the past few weeks, this week the stocks have finally got growth to themselves and are performing better. On Tuesday, the US stocks faced a straight second day of gains after the first day of congressional testimony from Jerome Powell of Federal Reserve Chair. Here’s a timeline of all that happened –
4:13 p.m. The stocks come down just a bit to settle just below their peaks
The major indices of the market had settled here –
- S&P 500 (^GSPC): +0.17% or +5.66 points to 3,357.75
- Dow (^DJI): -0.00% or -0.48 points to 29,276.34
- Nasdaq (^IXIC): +0.11% or +10.55 points to 9,638.94
- Crude oil (CL=F): +0.87% or +0.43 to 50.00 a barrel
- Gold (GC=F) -0.50% or -7.90 to 1,571.60 per ounce
3.01 p.m. Trump pressurizes the Fed with all he has!
President Donald Trump is well known to mend things so that it suits his ways well enough. His constant pressure on the Federal Reserve to lower the interest rates to juice the economy before the coming US Presidential election in 2020 is pertinent. If the interest rates go down, the market and stocks will behave positively which can be a great point for him to make a mark in the elections. All his strategies are targeted towards September and October, which is when people go out to cast their vote!
The current benchmark interest rate by the Fed has been brought down by 75 basis points. However, Trump isn’t the first President to be putting such pressure on the Fed Rate, but his scathing remark on the Fed Chair is unprecedented by many.
1.00 p.m. Cheaper crude oil now due to Corona Virus?
This is the time when China grapples with the deadly Corona Virus and its economy has fallen flat on the ground. Due to this, the global oil market is in surplus in this period of time. In the Q1 2020, it is expected that the market will remain over flooded before the demand rises again once the virus is contained or stopped completely. There are subtle risks associated here because the economic fallout of the virus can disrupt the US and European oil consumption patterns as well.
The market is a constantly happening place where every minute something is taking over the other. While the indexes have their share of ups and downs, the reason rooted beside every move is extremely deep-seated in socio-politics of the entire world. Every investor needs to keep track of all these to take better calls with their funds and make the most of any opportunity.