Dow skyrockets as FOMC meeting begins

As we approach the potentially massive impact of the Fed’s decision tomorrow, confidence appears to be returning to the market, with stocks on Wall Street surging to highs in late trading.

There’s no doubt that the market's focus will be on the outcome of the Fed meeting tomorrow, but in the meantime, US economic data has been bubbling along quite nicely, with signs of growth but without the concern of excessive inflation.

For me, the trifecta of modest growth, historically high unemployment and low inflation does not add up to the Fed reducing its current rate of stimulus, but just as important as the decision may be the tone in Bernanke's press conference and how he massages expectations for the future.

The Dow Jones was up 145 points, close to 1%, to 15,325 in the last hour of trading on Wall Street, while the S&P 500 and NASDAQ 100 made similar percentage gains.

Adobe Systems reports earnings after the market closes tonight. Earnings of $0.21 per share are expected for its fiscal second quarter.

This information has been prepared by IG, a trading name of IG Markets Limited. In addition to the disclaimer below, the material on this page does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently any person acting on it does so entirely at their own risk. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. It has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. See full non-independent research disclaimer and quarterly summary.

Find articles by analysts

Een artikel zoeken

Form has failed to submit. Please contact IG directly.

  • Ik wens per e-mail informatie van IG Group bedrijven te ontvangen over handelsideeën en IG's producten en diensten.

Voor meer informatie over hoe wij uw gegevens mogelijk kunnen gebruiken, bekijkt u ons Privacy- en toegangsbeleid en onze privacy website.

CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen. 79% van de retailbeleggers lijdt verlies op de handel in CFD’s met deze aanbieder.
Het is belangrijk dat u goed begrijpt hoe CFD's werken en dat u nagaat of u zich het hoge risico op verlies kunt permitteren.
CFD’s zijn complexe instrumenten en brengen vanwege het hefboomeffect een hoog risico mee van snel oplopende verliezen.