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Stock Market News: August 21, 2019

US. Stocks rallied on Wednesday as investors viewed the positive results of Target and Lowe & # 39; s as positive, awaiting the release of minutes from the July Federal Reserve meeting.

Here were the most important moves on the market, starting at 10:57 am ET:

  • S & P 500 (^ GSPC): + 0.79% or 22.86 points

  • Dow (^ DJI): + 0.91% or 236.32 points

  • Nasdaq (^ IXIC): + 0.91% or 72.32 points

  • 10-year government bond yield (^ TNX): +1 basis point to 1.569% [19659007] Investors largely hoped that the Fed's most recent minutes would reinforce market expectations for deeper cuts in key borrowing costs. At the end of the July meeting, the Fed cut interest rates for the first time since 2008, and markets have since priced in further cuts worth 50 to 75 basis points by the end of 2019.

    However, two Federal Open Market Members of the Committee (FOMC) disagreed with the Fed's recent monetary policy decision, arguing instead that the economy does not need a rate cut in July. This has worried market participants about whether the FOMC is ready to cut interest rates further in the future, especially given recent economic data that underpin robust consumer spending and a tight labor market.

    Comment by Fed Chairman Jerome Powell on Friday The central bank's annual Jackson Hole Symposium is also being closely monitored for further steps in monetary policy, giving the Fed another opportunity to share its announcements ahead of the next Optimizing Meetings Comments could trigger "slaughter on the bond and stock markets" if public statements do not appease market demands for a clear signal in favor of a simpler monetary policy.

    Powell's remarks come four weeks ahead of the Fed's reflections in September, which the markets expect. Almost the certainty will lead to a 25 basis point cut in the reference rate. [19659012] Dealers operate on the New York Stock Exchange (NYSE) in New York (USA) on August 13, 2019. REUTERS / Eduardo Munoz "class =" JsEnabled_Op (0) JsEnabled_Bg (n) Trsdu (.42s) Bgr (nr) Bgz (cv) StretchedBox W (100%) H (100%) ie-7_H (a) "itemprop =" url "style =" background-image: url (https://s.yimg.com/ny/api/ res / 1.2 / 6bWYZQNpmcPUpcUGhmQjjQ– ~ A / YXBwaWQ9aGlnaGxhbmRlcjtzbT0xO3c9ODAw / https: //media-mbst-pub-ue1.s3.amazonaws.com/creatr-images/2019-08/8c803ce0-bddc-11e9-bfec-4b7be4b1093c); " src = "https://s.yimg.com/g/images/spaceball.gif" data-reactid = "31" />

Traders working on the New York Stock Exchange (NYSE) in New York, USA, August 13, 2019. REUTERS / Eduardo Munoz