US Stock Market Overview – Stocks Slide but Complacency Remains Staple

FOMC meeting minutes show the Fed is on hold
David Becker

US stocks moved lower on Wednesday as concern that a trade agreement could be put off until 2020 weighed on prices. The major indices closed well of the lows of the trading session. The VIX volatility index started to rise after hitting fresh 2019 lows on Tuesday, which shows the market is very complacent. The Fed said in its latest meeting minutes, that it will likely remain on hold for the foreseeable future and that the hurdle for a cut or hike is high. Most sectors were lower, led down by Materials, while energy shares bucked the trend. Oil prices surged more than 3% helping to buoy energy shares.

A Trade Agreement Could be Punted Until 2020

A trade deal between US and China continues to drive market sentiment. Over the past few days concern that a deal could be put off until next year has been priced into shares. A deal between the US and China will likely require President Trump to agree to roll back some tariffs, which he opposes. China additionally does not want to commit to purchasing nearly double the agricultural products it has bought from the United States. Doubts about a trade agreement have been rising, particularly since the US Senate unanimously voted to support the Hong Kong protesters.

Fed Will Likely Keep Rates Unchanged

The Fed released the minutes of its latest FOMC meeting.  The committee has been divided since the summer over how aggressively to reduce rates. Two reserve bank presidents have dissented from every vote this year to lower rates. At that meeting, the Fed kept rates steady after cutting the previous three meetings.  Powell has stressed that it would hurdle rate to trigger any change in policy.  The Fed basically said that the would-be on hold for a while and essentially are at neutral policy.  The minutes said officials didn’t entirely rule out the possibility that the Fed might need to reassess rates in the near future.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Latest Articles

See All

Expand Your Knowledge

See All
The content provided on the website includes general news and publications, our personal analysis and opinions, and contents provided by third parties, which are intended for educational and research purposes only. It does not constitute, and should not be read as, any recommendation or advice to take any action whatsoever, including to make any investment or buy any product. When making any financial decision, you should perform your own due diligence checks, apply your own discretion and consult your competent advisors. The content of the website is not personally directed to you, and we does not take into account your financial situation or needs.The information contained in this website is not necessarily provided in real-time nor is it necessarily accurate. Prices provided herein may be provided by market makers and not by exchanges.Any trading or other financial decision you make shall be at your full responsibility, and you must not rely on any information provided through the website. FX Empire does not provide any warranty regarding any of the information contained in the website, and shall bear no responsibility for any trading losses you might incur as a result of using any information contained in the website.The website may include advertisements and other promotional contents, and FX Empire may receive compensation from third parties in connection with the content. FX Empire does not endorse any third party or recommends using any third party's services, and does not assume responsibility for your use of any such third party's website or services.FX Empire and its employees, officers, subsidiaries and associates, are not liable nor shall they be held liable for any loss or damage resulting from your use of the website or reliance on the information provided on this website.
This website includes information about cryptocurrencies, contracts for difference (CFDs) and other financial instruments, and about brokers, exchanges and other entities trading in such instruments. Both cryptocurrencies and CFDs are complex instruments and come with a high risk of losing money. You should carefully consider whether you understand how these instruments work and whether you can afford to take the high risk of losing your money.FX Empire encourages you to perform your own research before making any investment decision, and to avoid investing in any financial instrument which you do not fully understand how it works and what are the risks involved.