- Title: S&P 500 posts biggest drop since May after Fed cut, Powell comments
- Date: 31st July 2019
- Summary: NEW YORK CITY, NEW YORK, UNITED STATES (JULY 31, 2019) (REUTERS) (SOUNDBITE) (English) ART HOGAN, NATIONAL SECURITIES CHIEF MARKET STRATEGIST, SAYING: "But I think the market looked at this and said, 'Hey, what were we counting on? Two or more cuts for the rest of this year.' That might be ahead of itself and I think the markets saying 'We need to pull back our expectations. We may be at where we're going to be at for the Fed Funds Rate for the rest of the year.'"
- Embargoed: 14th August 2019 22:12
- Keywords: New York Stock Exchange Tweet stocks Donald Trump interest rates equities markets Jerome Powell Fed closing bell
- Location: NEW YORK CITY, NEW YORK, UNITED STATES / INTERNET
- City: NEW YORK CITY, NEW YORK, UNITED STATES / INTERNET
- Country: USA
- Topics: Economic Events,Equities Markets
- Reuters ID: LVA002AQ41ND9
- Aspect Ratio: 16:9
- Story Text: The Dow and S&P 500 suffered their biggest daily percentage drops since May 31 on Wednesday (July 31) after the Federal Reserve cut interest rates for the first time in a decade, but remarks by Fed Chair Jerome Powell dampened expectations for further cuts going forward.
Based on the latest available data, the Dow Jones Industrial Average fell 336.26 points, or 1.24%, to 26,861.76, the S&P 500 lost 33.07 points, or 1.10%, to 2,980.11, and the Nasdaq Composite dropped 98.20 points, or 1.19%, to 8,175.42.
U.S. President Donald Trump said through his Twitter page that Federal Reserve Chairman Jerome Powell "let us down" with a quarter-percentage-point interest rate cut on Wednesday, saying the market wanted a signal that a "lengthy and aggressive rate-cutting cycle" was under way.
"What the Market wanted to hear from Jay Powell and the Federal Reserve was that this was the beginning of a lengthy and aggressive rate-cutting cycle which would keep pace with China, The European Union and other countries around the world," Trump tweeted just hours after the U.S. central bank released its latest policy statement.
"As usual, Powell let us down, but at least he is ending quantitative tightening, which shouldn't have started in the first place," he added.
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