|Day's Range||0.1000 - 0.1500|
The S&P 500® is coming off one of the best years it’s seen in decades, the Dow Jones Industrial Average is knocking on the door of 30,000 after only 2 years in the 20,000 range and traders are unsure whether the party’s ever going to end.
The Wall Street has been hitting a series of record highs with the S&P 500 breaching the 3.300 level for the first time. Investors can tap the opportunity by going long on the index.
While this strategy is highly beneficial for short-term traders, it could lead to huge losses compared to traditional funds in the fluctuating or seesawing markets.
While markets are hanging near the all time highs that were recently made, there is some stagnation that is giving experts pause as to whether there is enough fuel in the tank to continue the uptrend. ...
The S&P 500, the Nasdaq and the Russell 2000 are on their way to record the best year since 2013, boosting the related ETFs. Will the rally last in 2020?
U.S. stocks chartered new all-time highs on Tuesday and were on pace for their fifth straight winning day as a so-called phase one trade deal between China and the U.S. makes way for a move higher for Wall Street to end a banner year. The trade war has had markets on a roller coaster of emotions all year, but analysts are more optimistic that this deal may mitigate investors' fears. “This should put to rest for the time being the “trade war” volatility factor in markets, which has become a dominant theme over the past year and a half,” said Eleanor Olcott, China policy analyst at TS Lombard, in a note.
In the most recent FOMC meeting announcement on Dec. 11, the Federal Reserve held interest rates constant following its two-day meeting, and implied that no action is likely next year amid persistently low inflation and solid growth.
U.S. markets are posting gains on news that the U.S. and China are "very close" to a trade deal. The reality however, is that while President Donald Trump is not anticipated to impose the menacing new tariffs on China this weekend, he may not have much of a trade deal to show either.
In the most recent FOMC meeting announcement today, the Federal Reserve held interest rates constant following its two-day meeting this week, and implied that no action is likely next year amid persistently low inflation and solid growth. After three rate cuts over the last a year, the Federal Open Market Committee on Wednesday met widely held expectations and kept the funds rate in a target range of 1.5%-1.75%. In its statement discusses the reasons for the decision, the committee indicated that monetary policy is likely to remain steady for a period of time, though officials will continue to monitor conditions as they develop, typical language used in previous announcements.
Nobody wants to miss out on a bull market move higher, but investors simultaneously hesitate from fear, seeing how the move has already traveled so far without them. As a result, they wait on the sidelines until suddenly the pain of missing out is overcome by to greed, causing investors to jump in with both feet, often at the top.
The bullish trends in the S&P 500 index will likely continue heading into the New Year powered by the Fed's accommodative interest-rate policy and a resilient domestic economy.
The current bull market, which began on March 9, 2009, has garnered an impressive 468% gain for the S&P 500 through the first day of November, making this record-long bull run also the best-performing market since World War II, according to The Leuthold Group. The S&P 500, which barely marked a record closing high on Wednesday, has climbed 471% in this epic run. Looking back at markets historically, there was another bull market that generated a 454% gain for the S&P 500.
After struggling to reach new highs once again Wednesday, markets are pulling back some Thursday morning, amidst impeachment hearings and fallout from the Fed, as Fed Chair Jerome Powell testifies before the US house again today. Hoping stocks will continue their ascension through 2020 and beyond, President Donald Trump has long been critical of the Fed and its approach to monetary policy, stating at The Economic Club Of New York on Tuesday, “If we had a Fed that worked with us, we could have added another 25% to those numbers,” referring to potential gains to major stock benchmarks. Powell emphasized that one factor which could damage the economy is the ongoing trade war with China.
The S&P 500 has rallied to fresh all-time highs today on the back of a new streaming service release from Disney, earnings data, and trade optimism. According to technical research strategists at Bank of America Merrill Lynch, the S&P 500 could have the potential to climb as much as an additional 25%, rocketing higher to 3,850, if stocks stage the same type of breakout they had after the last two similar market downturns. “Last week’s push above SPX 3,063 is an uncomfortable breakout for many who viewed the SPX pattern as bearish,” the strategists wrote, but added that the same was true of breakouts in late 2016 and early 2013.
In the continued drama that is the trade war, President Donald Trump said Friday he has not agreed to scrap tariffs on Chinese goods, as was claimed yesterday, dashing dreams about a coming resolution to the protracted trade conflict. On Thursday night, Trump trade advisor Peter Navarro also denied the reports. Investors who were rejoicing the possible end to the trade war are now more cautionary, as the roller-coaster headlines continue to affect the markets.
The bullish trend seems more likely this year with positive momentum built up in the space. This will result in huge demand for leveraged ETFs as investors seek to register big gains in a short span.
Billionaire investor and notorious trader Paul Tudor Jones sees the S&P 500 tanking by as much as 25% if Sen. Elizabeth Warren defeats President Trump in the 2020 election, but anticipates another 15% upside for the market if President Donald Trump wins reelection. Jones explained on Tuesday that an internal poll at his investment firm uncovered that employees believe the S&P 500 could plummet to 2,250 if Warren wins the election. Related: Would A Democratic President Be Bad For Markets?
While President Trump has affected markets with tweets and posturing, is it possible a Democratic presidential nominee like Elizabeth Warren could alter it herself in the future? Warren has made it no secret she is not the biggest fan of Wall Street and big business, claiming recently in Iowa, “Our democracy has been hijacked by the rich and the powerful.” Although it did not have an incredibly wide viewing reception, a video clip Warren's office produced was released in mid-July with the tagline “Stop Wall Street looting,” now has Blackstone and other private equity firms rattled. Some finance executives who chose to remain anonymous recently told Senate Minority Leader Chuck Schumer they are currently refraining from donating to Democrats running for Senate in 2020 due to their concerns Sen. Elizabeth Warren will become a favorite in the race for the party’s presidential nomination, according to people familiar with the conversations.
After a meteoric rise Wednesday following the FOMC meeting announcement and subsequent press conference with Federal Reserve Chairman Jerome Powell, U.S. stocks reversed all the gains from yesterday, to trade back below Thursday's range amid Impeachment and China trade deal woes. As anticipated, the Federal Reserve cut rates Wednesday by 25 points to a range of 1.5% to 1.75%, as part of what Fed Chairman Jerome Powell has characterized this year as a “midcycle adjustment” in a maturing economic expansion. The FOMC statement seemed generally positive and noted that, “Information received since the Federal Open Market Committee met in September indicates that the labor market remains strong and that economic activity has been rising at a moderate rate," with stocks climbing rapidly higher and closing at fresh all-time highs, which continued in overnight trading.