US stock market report March 20 2019
March 21, 2019
Stock market news
A mixed trading seesion for March 20 2019, with only Nasdaq closing higher at 7,728.97, +0,07%. Dow closed lower at 25,745.67, – 0.55%, and S&P 500 closed at 2,824.23, -0.29%.
The Fed announcement pushed intially the stock market higher, reversing course later on
Stocks close mostly lower after Fed signals no rate hikes this year
The Fed brought down its 2019 rate hike forecast to no increases down from two hikes. The central bank also indicated it intends to end the reduction of its massive $4.2 trillion balance sheet by September. However, the Fed also trimmed its economic growth forecast for 2019.
Stocks initially rallied off their lows of the day on the announcement as traders cheered a more accommodative policy stance from the Fed, which is typically supportive of equity prices.
No further interest rate hikes could be positive news for the stock market
Higher interest rates increase both the cost of capital for firms, and lower the valuation of intrinsic value for stocks and equities. The decision by Fed to appear very dovish for 2019 may indicate that US economy is headed for slower economic growth. So stock picking will be a tough task.