The Dow sputtered to a half-hearted recovery as Wall Street struggled to digest the meaning of yesterday’s shocking Fed remarks. | Source: AP Photo / Richard Drew
The Dow sputtered to a half-hearted recovery on Thursday as investors grappled with the realization that, despite cutting interest rates for the first time since 2008, the US Federal Reserve will not blindly craft its monetary policy to meet the demands of a greedy market – or President Trump.
Dow Struggles to Recover from Fed Shock
All of Wall Street’s major indices rose during the morning session, but only one secured a noteworthy recovery.
It wasn’t the Dow Jones Industrial Average, which rose just 38.25 points or 0.14% to 26,902.52. Big losses from Pfizer (-2.05%) and Exxon (-1.4%) weighed on the DJIA.
Nor was it the S&P 500, whose 5.84 point or 0.2% rebound left the index well below 3,000 at 2,986.43.
The Nasdaq, on the other hand, jumped 48.45 points or 0.59% to 8,223.87, far outpacing its peers.
Fed Chair Powell Throws Market Into Disarray
Stocks failed to recover from their July 31 bloodbath as Wall Street continued to wrestle with, not the Federal Reserve’s 25-basis point interest rate cut, but Fed Chairman Jerome Powell’s inscrutable commentary in the minutes that followed.
Powell rocked the market when he announced that the rate cut was a “mid-cycle adjustment,” suggesting that it was not “the beginning of a lengthy cutting cycle.”
“That is not what we’re seeing now,