Stocks Swing to Huge Gain

The Fed’s interest-rate and bond portfolio policies “were at the top of the list of things we were concerned about, which is why the statement Powell made today is so supportive of the market,” Orlando said. “The Fed understands that what they attempted to communicate last month was inartful, that they didn’t get the right message across, and Powell tried to reset.”

The S&P 500 index climbed 84.05 points, or 3.4 percent, to 2,531.94, more than wiping out Thursday’s loss. The Dow rose 3.3 percent to 23,433.16 after gaining 832 during the afternoon. The Nasdaq composite jumped 275.35 points, or 4.3 percent, to 6,738.86.

About 90 percent of the stocks on the New York Stock Exchange traded higher.

Stocks sank Thursday after Apple said iPhone sales in China are falling, partly because of the trade fight, and a survey suggested U.S. factories grew at a weaker pace. Technology companies took their biggest losses in seven years.

The U.S. and China have raised tariffs on billions of dollars of each other’s goods in a fight over issues including Beijing’s technology policy. Last month, President Donald Trump and Chinese leader Xi Jinping agreed to 90-day ceasefire as a step toward defusing tensions, but that failed to calm the stock market.

Technology companies, banks, health care and industrial companies all made strong gains. Most of the companies in those industries stand to do better in times of faster economic growth.

Smaller and more U.S.-focused companies did even better than larger multinationals. The Russell 2000 index surged 49.92 points, or 3.8 percent, to 1,380.75. Smaller companies have fallen further than larger ones in the last few months as investors got nervous about how the U.S. economy will perform in 2019 and 2020.

Stocks have whipsawed between huge gains and losses for the last few

Read More Here...

Bookmark the permalink.