Markets

Closing Update: Stocks Surge As Market's Hopes For Dovish Fed Build

Stocks rallied Tuesday afternoon on expectations that the Federal Open Market Committee will maintain its accommodative bias on interest rates, driving the Dow Jones Industrial to another record high and the S&P 500 over 2000 for the first time in five days. Comments generating out of a webcast from Wall Street Journal economics reporter and Fed-authority, Jon Hilsenrath that that the Fed is unlikely to alter its dovish language, triggered a surge in demand for both stocks and bonds as Wall Street was cheered by the prospect for a longer period of accommodation by the Fed.

The markets opened flat as the FOMC began its two-day meeting, trading slightly defensive in sympathy with European markets that have been undermined by upcoming referendum votes and the fall-out from Russian sanctions and downbeat economic data.

Today's sole economic data did little to offer direction initially as both the nominal and core PPI were both benign and as-expected. Tech stocks were initially weighed down by weakness in Apple ( AAPL ), but eventually pulled into positive turf on gains in biotechs and internet stocks. Oil stocks were higher as OPEC said it might cut output targets, while gold advanced for a second straight day despite the reduced risk of higher interest rates.

Here's where the markets stand at the close:

US MARKETS

Dow Jones Industrial Index was up 100.8 points (+0.6%) at 17,131

S&P 500 was up 14 points (+0.8%) at 1,998

Nasdaq Composite Index gained 33.8 points (+0.8%) at 4,552

GLOBAL SENTIMENT

FTSE 100 was down 0.18%

Nikkei 225 was down 0.28%

Hang Seng Index was down 0.91%

Shanghai China Composite Index was down 1.80%

UPSIDE MOVERS

(+) SINO Reported fiscal 2014 profit vs loss

(+) SCOK China local government provides co with gas pipeline distribution network

(+) GRT WPG to buy co for $14.20 per share

DOWNSIDE MOVERS

(-) SHLD Received $400 million short-term loan from ESL Investments

(-) SIGA Files chapter 11 while appealing PharmAthene ruling

(-) COOL Post wider-than-expected Q3 loss

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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