The markets surged, with the Dow closing more than 600 points higher, after Fed Chair Jerome Powell signaled rates are near neutral, a change in tone from remarks the central bank chief made nearly two months ago. The comments were eagerly awaited by investors as they worried tightening monetary policy may be happening too quickly. The Fed is largely expected to raise rates by 25 basis points next month. Easing worries on US-China trade also boosted stocks after a report from the New York Times said Trump was worried about the impact of a long trade war with China on markets and the economy. President Trump and Chinese President Xi Jinping are scheduled to meet for dinner this Saturday at the G-20 summit in Argentina. At the end of the day, investors breathed a sigh of relief today and the major indices rose strongly across the board:
DOW +617 at 25366
SP500 +61 at 2743
NASDAQ +208 at 7291
The 10 Year Treasury yield closed down 1 basis point to yield 3.04%
Oil prices closed -1.12 at 50.46 a barrel
Gold prices closed +7.10 at 1226.90 an ounce
In the days’ stock news:
- Boeing shares rose more than 4% with trade worries easing.
- Salesforce.com issued their 3Q earnings report after the bell yesterday, beating analysts’ earnings and revenue expectations, bolstered by growth stemming from the company’s recent acquisition of MuleSoft. CRM closed more than 10% higher on the day.