Dow falls on interest rate fears


The Dow Jones Industrial Average (#Dow30) fell 177 points yesterday -its largest single-day decline in 5 months - on profit-taking ahead the Federal Reserve monetary policy decision and concerns that interest rates will be raised. This is all just knee-jerk stuff of course. The market doesn’t really set much store by such minor changes, but old habits die hard, and a bit of profit-lockdown is never a bad idea. Most US corporate earnings have been pretty impressive, with 77% of companies reporting earnings that exceeded estimates. A minor (and overdue) interest rate rise won’t have any serious impact on their ability to continue flourishing, so this should not be construed as a trend reversal.  Non-Farm Payroll data will be released Friday, and if we have learned anything it’s that the market gets terribly excited about this, usually for no reason at all. It’ll go up, it’ll go down (not necessarily in that order) and next week it’ll be right back where it started.

Share this news

Related posts

Economic 2019-07-31_FOMC.png

Countdown to FOMC on 31st of July


Market expects 0.25% rate cut on 31st of July 2019

Read more
Calendar Calendar.jpg (1)

The week ahead 15.07.2019


Upcoming releases next week

Read more
Stock Market US stock-exchange.jpg

Stock market rally


Stock market rally after Powell transcript

Read more
Forex News yen.jpg

Dollar Yen breaks lower


Dollar Yen breaks lower

Read more