US Stock Market Overview – Stocks Rise, Led by Real-Estate, Energy Bucks the Trend

The Fed is on deck
David Becker
U.S. Equity Indexes

US stocks prices were higher on Tuesday rebounding as crude moved lower after Saudi Arabia assured the markets that they would be completely back online by September 30. Trader’s now await the Federal Reserve decision on Wednesday. Expectations are that the Fed will reduce interest rates by 25-basis points. This comes as manufacturing rose according to the Fed. Inflation remains subdued and the retail investors is strong, which has led many economists to say that the Fed should stand pat. Currently there is only a 3% chance that the Fed will keep rates unchanged. Sectors were mixed, led higher by Real-estate, while Energy shares bucked the trend.

The Fed Takes Center Stage

There are many reasons why the Fed should stand pat, but the consensus is that they will cut rates by 25-basis points. The drama is centered on just how strongly the Fed will signal that it’s going to cut rates again by the end of 2019. It’s the statement that will determine whether the Fed meets market expectations. The market is looking for more cuts during the balance of 2019, and if that does not come through via Fed Chair Powell’s commentary following the Fed decision the markets are likely to sell off.

The Fed faces many challenges. President Donald Trump continues to hammer away at the Fed looking for them to reduce rates down to zero, buoying the stock market and raising the chance that he will be reelected.

Manufacturing Rises

The Fed announced that manufacturing production rose 0.6% last month after an unrevised 0.4% drop in July. Expectations were for manufacturing output to rise by 0.2% in August. Production at factories fell 0.4% in August on a year over yea5r. Manufacturing, which accounts for about 11% of the U.S. economy, is being hobbled by a year-old trade war between the United States and China and slowing global economic growth. The trade war has eroded business confidence. Its unlikely that a trade agreement will be mediated in October, which is likely to keep gold prices buoyed.

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

Top Promotions

Top Brokers

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.