Stock market indexes extended gains propelled by telecom and financial stocks. Investors remained in a holding pattern ahead of the Federal Reserve meeting. The Dow added 39 points or +0.18% to finish at 22,371.38, Nasdaq edged up 6 points or +0.10% to close at 6,461.32 and the S&P 500 went up 2.78 points or +0.11% to 2,506.65
Leading sectors were telecoms up +2.25% and financials notched +0.80%. Over on the Dow, Verizon Communications climbed +2.60% and American Express went up +1.29%. UnitedHealth Group and General Electric led the decliners falling -1.79% and -1.06% respectively.
Meanwhile, in the spotlight is the Federal Reserve at the start of its policy meeting, which will conclude on Wednesday 20 Sept. with a press conference led by Janet Yellen announcing interest rates.
- Dow 22,371.38 +0.18%
- S&P 500 2,506.65 +0.11%
- Nasdaq 6,461.32 +0.10%
- Russell 2000 1,440.17 -0.06%
- NYSE Composite 12,131.87 +0.17%
- Gold 1,314.7 +0.29%
- Oil WTI $49.59 -0.64%
- 10-Year Treasury 2.24 +0.01%
Losing the quantitative easing blanket?
Investors have already anticipated and priced in for interest rates to remain unchanged. However, the central bank has laid the groundwork for months readying the market for a potential unwinding of its debt positions of $4.5 trillion - acquired to cushion the economy during the credit crisis.
t’s been a softly, softly approach by the Fed outlining just how it will trim its balance sheet given certain economic conditions. Now there is hope for a clearer signal from the Fed about when quantitative easing will begin.
Trump threat to “totally destroy North Korea”
The dollar is weakening ahead of the Federal Reserve decision with the dollar index (measured against a basket of 16 other currencies) sliding -0.1% as investors shift focus to the December rate outlook. Bond prices fell with 10-Year Treasury note increased +0.02%
Viraj Patel, an analyst with ING Bank argued that "In the absence of any convincing hawkish signal - such as a reference to another rate hike being 'appropriate soon' - we think the USD is likely to follow the historical pattern of moving lower in the aftermath of the FOMC meeting."
North Korea tensions reignite as President Donald Trump threatens to “totally destroy North Korea” if its leader Kim Jong Un does not abandon his nuclear weapons in his debut speech to the U.N. General Assembly.
Quote of the day: “Rocket man is on a suicide mission for himself and for his regime. The U.S. is ready, willing and able to defend itself but hopefully this will not be necessary.” President Trump at the UN Assembly in New York.