Interest Rate Cut Hopes Dashed

Here is a daily recap of the S&P 500 broken down by sector followed by sector heat map as interest rate cut hopes dashed. 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 drops more than 150 points after Fed’s Powell dashes rate-cut hopes

Stocks fell on Wednesday after the top-ranking Federal Reserve official hinted that lower rates may not be in the cards. The Dow Jones Industrial Average closed down 162.77 points at 26,430.14, while the S&P 500 pulled back 0.8% to 2,923.73 after hitting an all-time high. The Nasdaq Composite declined 0.6% to 8,049.64.

The S&P 500 (SPY) dropped -0.75% today. Sector decliners led advancers 10 to 1 as shown below in the sector graph. Energy (XLE) -2% led decliners down. Consumer discretionary (XLY), consumer staples (XLP), materials (XLB) and utilities (XLU) each had losses of more than 1%. Communication services (XLC), financials (XLF), healthcare (XLV), industrials (XLI) and technology (XLK) each had small losses of less than 1%. Real estate (XLRE) was flat (+0.00%).

The Dow Jones index lost 162 points (-0.61%) to close at 26,430. The Nasdaq gave back 45 points (-0.57%) to settle at 8,049.

Interest Rate Cut Hopes Dashed

Stocks finished lower on Wednesday as the market’s hopes for an interest rate cut were dashed by the Fed Chairman. Fed Chair Powell said low inflation may be only “transitory,” ending speculation the the Fed was thinking of a rate cut because of low inflation. Apple (AAPL) almost rose 5% as the tech giant announced earnings that beat estimates. ADP private payrolls increased by 275,000 jobs in April versus an estimate of 177,000 jobs. 

Key Takeaway…

CNBC’s Steve Liesman goes over the Fed’s interest rate decision:

Fed leaves rates unchanged

CNBC’s Steve Liesman reports on the Federal Reserve’s decision to leave interest rates unchanged. The Fed said it would continue to be patient.

Notable S&P 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. Information Credit: News Headlines and quotes were taken from CNBC in the writing of this post.

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5/1/19

S&P 500 Sector Graph

Interest Rate Cut Hopes Dashed

S&P 500 (SPY)

Interest Rate Cut Hopes Dashed

Communication Services (XLC)

Interest Rate Cut Hopes Dashed

Consumer Discretionary (XLY)

Interest Rate Cut Hopes Dashed

Consumer Staples (XLP)

Interest Rate Cut Hopes Dashed

Energy (XLE)

Interest Rate Cut Hopes Dashed

Financials (XLF)

Interest Rate Cut Hopes Dashed

Real Estate (XLRE)

Interest Rate Cut Hopes Dashed

Healthcare (XLV)

Interest Rate Cut Hopes Dashed

Industrials (XLI)

Interest Rate Cut Hopes Dashed

Materials (XLB)

Interest Rate Cut Hopes Dashed

Technology (XLK)

Interest Rate Cut Hopes Dashed

Utilities (XLU)

Interest Rate Cut Hopes Dashed

S&P 500 Sector Heat Map

Interest Rate Cut Hopes Dashed

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