Fed Future Rate Path Unclear

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as Fed future rate path unclear. 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:

US futures point to slightly lower open

U.S. stocks were set to open slightly lower Wednesday morning.

The S&P 500 (SPY) inched up +0.03% today. Sector decliners led advancers 7 to 4 as shown below in the sector graph. Communication services (XLC), consumer discretionary (XLY), energy (XLE), healthcare (XLV), industrials (XLI), real estate (XLRE) and technology (XLK) each suffered losses of less than 1%. Consumer staples (XLP), financials (XLF), materials (XLB) and utilities (XLU) each enjoyed gains of less than 1%.

The Dow Jones index added +36 points (+0.13%) to close at 27,147. The Nasdaq lost -8 points (-0.11%) to settle at 8,177.

Fed Future Rate Path Unclear

Stocks ended flat on Wednesday as the Fed cut interest rates but the future rate path remains unclear.

The U.S. central bank cut the overnight rate by 25 basis points to a range of 1.75% to 2%, as was widely expected. This is the second time this year the Fed has lowered rates.

However, the Fed was divided in its decision to lower rates, with three officials dissenting. Central bank officials are also split on further action this year.

Five Fed members wanted to keep rates unchanged while five others supported lowering them to the current range and keeping them there. Seven others wanted at least one more rate cut.

Chairman Jerome Powell told reported the Fed could initiate a “sequence” of rate cuts if the economy slows down, but noted he does not see that right now.

Key Takeaways…

I took the following CNBC screenshots today regarding US recession risks, why the pessimism, Trump comments on Fed and key takeaways from Powell press conference:

Notable S&P 500 Movers…

Below I’ve highlighted 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. Photo Credit: federalreserve.gov Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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S&P 500 Sector Graph

Fed Future Rate Path Unclear

S&P 500 (SPY)

Fed Future Rate Path Unclear

Communication Services (XLC)

Fed Future Rate Path Unclear

Consumer Discretionary (XLY)

Fed Future Rate Path Unclear

Consumer Staples (XLP)

Fed Future Rate Path Unclear

Energy (XLE)

Fed Future Rate Path Unclear

Financials (XLF)

Fed Future Rate Path Unclear

Real Estate (XLRE)

Fed Future Rate Path Unclear

Healthcare (XLV)

Industrials (XLI)

Materials (XLB)

Technology (XLK)

Utilities (XLU)

S&P 500 Sector Heat Map


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