We'll see how the good cop/bad cop geopolitics situation goes after Oct 1. For now, US-China relations a bit more amenable relative to August's vibe; a measure of goodwill in light of the 70th anniversary of the People's Republic of China. Macro data has been looking decent as well.
The U.S. shows no sign of slipping into recession and the labor market—judging by the unemployment rate—is the tightest in half a century. Inflation excluding food and energy in the past few months has bounced back to around 2%. The risk of rising inflation isn’t high, but in these circumstances, it isn’t zero. The market has sold off after the last few fed announcements.
Stocks end flat in an exceedingly lackluster session. The Dow Jones industrials were down zero.2% once Stocks open slightly higher as investors still digest the Fed's rate cuts. The information system Composite finished up zero.7% at the tip of the day.
A strong gap stock rally light within the afternoon thanks to amid tension for future U.S.-China trade talks. Gains within the Telecoms, Health care, and utility sectors propelled shares higher however the remainder of the market was sluggish, however, with industrials, financials, and energy among today's laggards. Microsoft provided some support in technology stock lifting shares to a brand new incomparable high, still as for the broader market once saying a $40B purchase program and raising its quarterly dividend by 11 November, the utility sector in S&P five hundred indices set a brand new record high, in conjunction with the health care cluster that enjoyed a rare outperformance conjointly.McDermott International INC. (MDR), Advanced small Devices INC. (AMD) and U.S. Steel (X) was the foremost active stocks for yesterday.
Existing-home sales inched up in August, despite tight provides in keeping with the National Association of Realtors reports. Sales were up 1.3% from July thanks to enticing mortgage rates. with the exception of the Islamic Republic of Iran ramped up rhetoric following the weekend strike on Saudi drilling facilities that drained 0.5 its daily output. On commodities markets, oil affected higher with petroleum futures adding 0.45% and brent goose crude up 0.31%. Gold and silver were lower dropping 0.63% and 0.5%, severally.
Apparently, the repo market hasn't calmed down enough for the Fed's style and once more it'll be conducted with primary dealers for up to a combined quantity of $75B. Barclays's Joseph Abate says the Fed "might wish to think about a one-time coupon pass" of ~$150B "to boost the extent of bank reserves for good."