Easing Monetary Policy Signals Stock Rally

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as easing monetary policy signals stock rally. Stocks in heat map are based on the top 10 holdings of each sector ETF. Click on each picture to zoom in. Below is a summary of today’s action on Wall Street provided by CNBC:

Dow surges 450 points as Fed signals it will help economy if needed, trade tensions ease

Stocks surged on Tuesday, climbing back from a big rout in the past month, after Federal Reserve Chairman Jerome Powell signaled the central bank was open to easing monetary policy to save the economy and as trade tensions eased amid comments by China and Mexico. The Dow Jones Industrial Average climbed 450 points, or 1.8%.

The S&P 500 (SPY) rallied +2.14% today. Sector advancers led decliners 10 to 1 as shown below in the sector graph. Technology (XLK) led the market higher with a +3.34% gain. Communication services (XLC), consumer discretionary (XLY), financials (XLF), industrials (XLI) and materials (XLB) each had gains of +2% or more. Energy (XLE) and healthcare (XLV) each had gains of 1% or more. Consumer staples (XLP) and utilities (XLU) each had small gains of less than 1%. Real estate (XLRE) suffered a minor loss of less than 1%.

The Dow Jones index climbed +512 points (+2.06%) to close at 25,332. The Nasdaq jumped +194 points (+2.65%) to settle at 7,527.

Easing Monetary Policy Signals Stock Rally

Stocks rallied on Tuesday, recovering slightly from an ugly May after Federal Reserve Chair Jerome Powell said the FOMC was open to easing monetary policy to save the economy. Powell said the central bank will “act as appropriate to sustain the expansion.” He noted, however, the Fed does not know “how or when” global trade issues will be resolved. “We are closely monitoring the implications of these developments for the U.S. economic outlook.”

Key Takeaways…

I took the following CNBC screenshots today regarding market conditions and Fed rate cut probabilities:

Notable S&P Movers…

I’ve highlighted below some notable S&P movers (both winners & losers).

Credit: Sector Graph provided by Sector SPDR app. Sector breakdown provided by Charles Schwab. Sector heat map provided by finviz. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post. Photo Credit: federalreserve.gov

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6/4/19

S&P 500 Sector Graph

Easing Monetary Policy Signals Stock Rally

S&P 500 (SPY)

Easing Monetary Policy Signals Stock Rally

Communication Services (XLC)

Easing Monetary Policy Signals Stock Rally

Consumer Discretionary (XLY)

Easing Monetary Policy Signals Stock Rally

Consumer Staples (XLP)

Easing Monetary Policy Signals Stock Rally

Energy (XLE)

Easing Monetary Policy Signals Stock Rally

Financials (XLF)

Easing Monetary Policy Signals Stock Rally

Real Estate (XLRE)

Easing Monetary Policy Signals Stock Rally

Healthcare (XLV)

Easing Monetary Policy Signals Stock Rally

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map

 

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