Highlights
Stocks traded mixed Wednesday after a short-lived pop up after the Federal Reserve rate cut gave way to weakness into the close. The Dow Jones industrial average firmed 0.6 percent, the S&P 500 eased 0.1 percent, and the Nasdaq was down 0.3 percent. US Treasury yields and the dollar rose while oil prices slipped.
Stocks were broadly better as the Fed delivered the expected 25 basis point rate cut although losses in key megacaps weighed on the major averages. Nvidia was a key decliner on news that China was restricting its chip sales. Fed Chair Jerome Powell's comments reminded investors that much uncertainty remains over the path of rates, which depressed stocks into the close. Rising bond yields weighed on equities as many bond traders sold on the expected rate cut news after buying on the expectation of the rate move.
Among sectors, best performers included financials, materials, health care and utilities, while lagging were information technology, consumer discretionary and industrials.
Definition
Market Reflections track market reaction to the trading day's major events. Economic data, policymaker speeches, and company news are featured in this report as well as key indexes and financial instruments.
Description
Understanding why markets respond as they do is fundamental for an investor. Market Reflections help explain how the day's events, news, and data impact the outlook for the economy and for market prices.