Federal Reserve Actions Fueling Stock Prices

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as the Federal Reserve actions fueling stock prices. 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:

Stock futures flat in overnight trading after S&P 500 and Dow notch best August since 1980s

Stock futures were flat in overnight trading on Monday after Wall Street notched its fifth consecutive month of gains. Futures on the Dow Jones Industrial Average fell about 30 points. The S&P 500 futures and the Nasdaq 100 futures were both little changed.

The S&P 500 (SPY) rose +0.75% today. Sector advancers led decliners 7 to 4 as shown below in the sector graph. Gains ranged from +2.81% to less than 1%. 4 sectors lost less than 1%, check the sector graph for specifics.

The Dow Jones index jumped +215 points (+0.76%) to close at 28,645. The Nasdaq added +164 points (+1.39%) to settle at 11,939.

Federal Reserve Actions Fueling Stock Prices

Stocks began September on a high note Tuesday as manufacturing data supported growing optimism that economic recovery continues.

The major averages also got a boost on Tuesday from better-than-expected manufacturing data out of the Institute for Supply Management. The final read on the firm’s August manufacturing PMI came in at 56, a 19-month high, as new orders hit their highest level since 2004.

“Fed officials continue to drive up stock prices by committing to keeping interest rates close to zero for a very long time … Consequently, they are fueling the meltup in stock prices.” said Ed Yardeni, president and chief investment strategist at Yardeni Research, in a note.

Key Takeaways…

Notable S&P 500 Movers…

Below I’ve highlighted some notable S&P 500 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.

Download our new Handy ETF Guide

Subscribe to get our free weekly newsletter by email.

We won't send you spam. Unsubscribe at any time. Powered by ConvertKit

9/1/20

S&P 500 Sector Graph

Federal Reserve Actions Fueling Stock Prices

S&P 500 (SPY)

Federal Reserve Actions Fueling Stock Prices

Communication Services (XLC)

Federal Reserve Actions Fueling Stock Prices

Consumer Discretionary (XLY)

Federal Reserve Actions Fueling Stock Prices

Episode 1: Basic Investment Strategy – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 1: Basic Investment Strategy Episode 1 goes over my basic investment strategy for individual investors (from years of watching and learning from CNBC).

Consumer Staples (XLP)

Federal Reserve Actions Fueling Stock Prices

Energy (XLE)

Federal Reserve Actions Fueling Stock Prices

Financials (XLF)

Federal Reserve Actions Fueling Stock Prices

Real Estate (XLRE)

Federal Reserve Actions Fueling Stock Prices

Healthcare (XLV)

Federal Reserve Actions Fueling Stock Prices

Episode 2: Building a Diversified Portfolio – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 2: Building a Diversified Portfolio In this episode, I go over 5 stocks to build a diversified portfolio on. These are 5 stocks to hold for the long term in a retirement account such as a Roth or traditional IRA account.

Industrials (XLI)

Federal Reserve Actions Fueling Stock Prices

Materials (XLB)

Federal Reserve Actions Fueling Stock Prices

Episode 3: 6 Investing Rules for Individual Investors – Simply Stock Info: The Podcast

Simply Stock Info: The Podcast Episode 3: 6 Investing Rules for Individual Investors In this episode I discuss 6 investing rules for the individual investor that is in charge of their own retirement account.

Technology (XLK)

Federal Reserve Actions Fueling Stock Prices

Utilities (XLU)

S&P 500 Sector Heat Map

 

Leave a Reply

Your email address will not be published. Required fields are marked *