The US stock market: On wall street will rise

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Yesterday’s speech by the fed was even more dovish than markets expected. Investors are ready to believe that in the near future, the global financial regulator will reduce the cost of money in the global economy by 0.5%. In other words, it assumes that the reference rate will fall by 50 basis points. To think so is not even affected by strong data on US employment that we saw last week.
Experts at Morgan Stanley believe that the decisive response of monetary authorities to avert the threat of a further sharp slowdown in economic activity in the global economy. In addition to yesterday’s speech of Powell investors have been interesting minutes of the last meeting of the Federal open market Committee. He’s a little cooled speculators on wall street. It is noteworthy that the report of Powell’s was published before the us session opened.
Of course, markets rose. We are still in late April said that the U.S. stock market has all chances to reach level 3 111,13 by Standard & Poor’s 500. Yesterday, he once again renewed its historical maximum, and now he will open the way to levels above 3 000,03 points. Interestingly, yesterday, the index has overcome a mark in 3 000,03 and was also 3 003 points.
In addition to Powell’s yesterday newsmaker was Donald trump. He again promised to punish Iran. Also on mood was influenced by the data about falling of stocks of crude oil on the East coast in the USA and news about the storm “Barry”, which is close to the Gulf of Mexico.
On wall street will rise, while the markets appetite for risky assets and it is under the control of speculators. Let’s see what happens at the end of the month, when the fed will decide whether to lower the rate.
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Roman Blinov,
Head of analytical Department,
“International financial center”