U.S. Markets closed

US Stock Market Overview – Stocks Close Mixed, Powell Testifies, Google Announces Consumer Checking Accounts

David Becker

US stocks were mixed and traders shrugged off news that the US and China had hit a snag in their trade negotiations. It appears that not only does the Trump administration not want to remove tariffs but the number of Agricultural products the Chinese want to purchase is less than the US had expected. This has created a hold up and stocks initially whipsawed on this news. US consumer inflation came in slightly stronger than expected, but yields moved lower on dovish commentary from Fed Chair Powell. Sectors in the S&P 500 were mixed, with defensive sectors Utilities and Real-estate moving higher and energy bucking the trend.

Powell Testifies in Front of Congress

Gerome Powell testified in front of a joint economic committee on the hill on Wednesday. He reiterated that the bar for additional rate cuts is high but extended a dovish tone. He was asked multiple times about trade, and consistently said that he believes this was out of the Fed lane. He did say if economic growth started to slip the Fed would readjust its focus.

CPI Came in Stronger Than Expected

US CPI came in stronger than expected according to the Labor Department. Headline CPI was reported at 0.4% last month compared to expectations that it would rise by 0.3% month over month. For the year ending October 31, CPI increased 1.8% after climbing 1.7% in September. Expectation were for CPI to rise 1.7% on a year-on-year basis. Core CPI, which excludes food and energy, rose 0.2% after edging up 0.1% in September. Year over year through October, the core CPI increased 2.3% after rising 2.4% in September.

Google Announces Checking Accounts

Google will soon offer checking accounts to consumers, according to reports. The project, code-named Cache, is expected to launch next year and will be run by Citigroup. Their ambitions could challenge incumbent financial-services firms, which fear of losing their primacy and customers.

This article was originally posted on FX Empire

More From FXEMPIRE: