S&P 500 surges 1% to record high as investors hope for Fed rate cut
The S&P 500 and Dow Jones rise after optimism about Fed rate cuts and US-China talks.
The S&P 500 jumped to a record high of 2,954.18 and the Dow Jones rose almost 250 points. Investors were optimistic that the US Federal Reserve will cut interest rates later this year.
Fed comments give investors hope
Though the Fed kept interest rates steady, the US central bank said that it could take action if necessary to lift the US economy. Many investors and economists are hopeful about a future rate cut helping the US stock market. However, Jake Dollarhide, chief executive officer (CEO) of Longbow Asset Management, warns that escalating US-Iran tensions could make any S&P 500 growth short-lived.
‘This new high on the S&P 500 could be fool’s gold. We have this simmering tension in Iran that could spill over and create all kinds of global fears,’ said Dollarhide.
Revival of US-China trade talks boosts Dow Jones
The Dow Jones is also reacting positively to pending trade talks between the US and China. China's Commerce Ministry spokesperson, Gao Feng, said that trade representatives from the two nations will meet.
‘The heads of the two trade teams will communicate, according to instructions passed down from the two presidents [of the US and China],’ said Feng.
Sian Fenner, chief Asia economist at Oxford Economics, says that an end to the US-China tariff war would be the ideal outcome of the upcoming summit to calm global economic tensions.
'It is positive that they’re [the US and China] talking again. What we would be hoping is that at least we will see an easing in tensions so we won’t be seeing any further tariff hikes,’ said Fenner.
Investors will watch the Fed and international events to see how they impact the Dow Jones and S&P 500.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Take a position on indices
Deal on the world’s major stock indices today.
- Trade the lowest Wall Street spreads on the market
- 1-point spread on the FTSE 100 and Germany 40
- The only provider to offer 24-hour pricing
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.
