US indexes rally as trading gets under way
- US Market
- 5 months ago
The main U.S. indices gained some momentum as the Fed is expected to reveal its decision later today and the sentiment is that Powell will decrease the pace of the rate hikes going into 2019.
The DJIA has risen by more than 1% thanks to Caterpillar gaining 3.64% and Boeing rose by 0.79%, the S&P500 too climbed by 1% and the Nasdaq Composite grew by 0.6% as Alphabet and Netflix both increased by 2%.
The Fed is considered to bring the Fed funds rate change to 2.50% regardless of criticism and even Trump himself warning of any rise in rates being a mistake.
Nevertheless, the feeling is that although it has been a rocky end to the year some do not see a recession, FedEx chairman and CEO Frederick Smith remarked the sentiment by saying, "I'll just conclude by saying most of the issues that we're dealing with today are induced by bad political choices."
"I mean, making a bad decision about a new tax, creating a tremendously difficult situation with Brexit, the immigration crisis in Germany, the mercantilism and state-owned enterprise initiatives in China, the tariffs that the United States put in unilaterally. So you just go down the list, and they're all things that have created macroeconomic slowdowns."
Source: Smart Trend Team