U.S. stocks slipped, and safe haven assets advanced as investors assimilated commentary from Federal Reserve Chairman Jerome Powell on Tuesday afternoon.
The S&P 500 (^GSPC) dropped 27.9 points, as of the market close. The Dow (^DJI) fell 179.05 points, whereas the Nasdaq (^IXIC) declined 1.51%.
Five Fed speakers were on the schedule to present public remarks Tuesday, with Fed Chair Jerome Powell’s speech on the financial outlook and monetary policy in New York at 1 p.m. supporting as a focus for investors.
Powell emphasized that he and his colleagues have been carefully monitoring the economic outlook to find out one of the best course of action for future monetary policy, and reiterated that the Fed would “act appropriately to maintain the growth.” He noted that the risks begin of the year, together with the threat.
This speech came after The President renewed his attacks on Fed officials, linking them to a stubborn child for holding rates steady after last week’s assembly. He suggested that the Fed wanted to cut charges “to make up for what different countries are doing against us,” after global central banks loosened their very own monetary policy throughout June.
Markets priced in a 100% chance of a rate cut after the Fed’s July meeting as of Tuesday afternoon. This comprised a 5.7% probability of a 25 basis point cut and a 34.3% chance of a 50 basis point cut.
Markets priced in a 100% possibility of a rate cut after the Fed’s July meeting as of Tuesday afternoon. This comprised a 5.7% probability of a 25 basis point cut and a 34.3% probability of a 50 basis point cut.