The S&P 500 Breaks 3,000

For a brief moment this morning, the S&P 500 broke 3,000. Of course, this is an arbitrary number, but it’s worth reflecting on the market’s stunning climb. Ten years ago, the index was around 900. For context, the S&P 500 broke 30 on August 16, 1929 (this was the old S&P 90). The S&P 500 broke 300 on March 23, 1987.

Fed Chairman Jay Powell testified today before the House Financial Services Committee. Tomorrow, he’ll go before the Senate. His comments have been interpreted as being dovish. In other words, the Fed may cut at the end of this month. That’s good for stocks and it’s why we’re up today.

The Fed also released the minutes from their June meeting. These were largely seen as helping the case that the Fed will soon cut rates. The futures market currently thinks there’s a 100% chance the Fed will cut in three weeks. There’s another 73% chance that the Fed will cut again in September. (And a third cut by Christmas!)

Posted by on July 10th, 2019 at 11:55 am


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