Dow Soars Over 400 Points To Hit All-Time High, Rising For 4th Consecutive Session — Investors Eye Kevin Warsh’s First Meeting As Fed Chair

by

The S&P 500 index gained about 0.1%, while the Nasdaq Composite rose 0.3%.

  • The Federal Open Market Committee’s two-day policy meeting begins today, with the policy decision set to be announced on Wednesday.
  • Analysts at Schwab Center for Financial Research highlighted that Warsh’s words would be examined closely for clues on how he oversees the Fed’s dual mandate.
  • Data from the CME FedWatch tool shows that the odds of the Fed keeping rates unchanged are at 99.6%.

U.S. equities soared in Tuesday morning’s trade, with the Dow Jones Industrial Average (DJIA) rising for the fourth consecutive session.

Add Asianet Newsable as a Preferred Source

The DJIA was up more than 400 points at the time of writing, hitting an all-time high of 52,103 before paring some of the gains. The S&P 500 index gained about 0.1%, while the Nasdaq Composite rose 0.3%.

Investors Eye Kevin Warsh’s First Meeting As Fed Chair

The Federal Open Market Committee’s (FOMC) two-day policy meeting begins today, with the policy decision set to be announced on Wednesday.

While markets expect the Federal Reserve to leave rates unchanged this month, the investor focus will be on what new Fed Chair Kevin Warsh has to say.

“While there’s no change likely in interest rates tomorrow, Warsh’s words will be examined closely for clues on how he’ll oversee the dual mandate of stable prices and maximum employment,” said analysts at Schwab Center for Financial Research (SCFR).

Data from the CME FedWatch tool shows that the odds of the Fed keeping rates unchanged are at 99.6%.

Jeremy Siegel, professor emeritus of finance at the University of Pennsylvania’s Wharton School of Business, believes that this month’s Fed meeting will be one of the most important ones in years.

Trump Denies Investing In Iran

President Donald Trump said on Tuesday that the U.S. is not investing any money in Iran, two days after announcing that the Iran deal was “complete.”

“We have the right to go in some day and do, if I want to do something, or if somebody wants to do something, but we are not investing any money,” he said while addressing reporters during a bilateral meeting with the Emir of the State of Qatar.

However, Vice President JD Vance said during an interview with CBS on Monday that a $300 billion investment fund could be something that Iran could have access to, “funded by the Gulf Coast Coalition, so long as they honor their end of the obligation.”

Crude Oil Prices Tumble

Crude oil prices declined on Tuesday to the lowest levels in more than two months. U.S. West Texas Intermediate (WTI) crude futures expiring in July fell 3.73% to hover around $77.73 a barrel. Brent crude futures expiring in August fell 3.09% to hover around $80.06 a barrel.

The United States Oil Fund ETF (USO) and the ProShares Ultra Bloomberg Crude Oil ETF (UCO) declined about 4%.

At the time of writing, the SPDR S&P 500 ETF (SPY), which tracks the S&P 500 index, edged up by 0.07%; the Invesco QQQ Trust ETF (QQQ) gained 0.08%; and the SPDR Dow Jones Industrial Average ETF Trust (DIA) gained 0.56%. Retail sentiment on Stocktwits regarding the S&P 500 ETF was in the ‘bearish’ territory.

For updates and corrections, email newsroom[at]stocktwits[dot]com.<

Leave a Comment