July 31, 2019
By Fred Imbret
Stocks dropped on Wednesday (click here) Federal Reserve Chairman Jerome Powell dampened hopes for further rate cuts later this year.
The Dow Jones Industrial Average closed 333.75 points lower, or 1.2%, at 26,864.27 after falling as much as 478 points at one point. The S&P 500 slid 1.1% to close at 2,980.38. The Nasdaq Composite fell 1.2% to 8,175.42. The Dow logged its biggest one-day decline since May 31 along with the S&P 500. The Nasdaq had it biggest one-day drop since late June.
“The stock market seemed disappointed with Powell’s performance, perhaps because while Powell did not suggest this was a ‘one-and-done’ cut, there was no overt messaging that a September cut is guaranteed,” said Don Ellenberger, senior portfolio manager at Federated Investors.
The Fed cut rates by 25 basis points, matching market expectations. The central bank cited “global developments ” along with “muted inflation” as reasons for easing monetary conditions....
