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The Fed has put. US stocks exploded on Tuesday after Federal Reserve Chairman Jerome Powell hinted that rate cuts could be considered. It was a big rebound after Monday's wreck for tech stocks. Trade concerns have eased somewhat, with Republicans considering voting to block President Donald Trump's proposed new tariffs on Mexico. Today After the bell, we …
- look at the Federal Reserve's latest position on rate reductions;
- watch the tech stocks rebound after Monday's bloodbath;
- and whether tariffs on Mexican imports will actually be applied.
The longest expansion
Shares surged Tuesday, rebounding after the strong sell of the previous session. the
Dow Jones Industrial Average
jumped 512.4 points, or 2.06%, to close at 25,332.18. the
S & P 500
rose 58.82 points, or 2.14%, to finish at 2803.27, and the
Nasdaq Composite
Rised 194.10 points, or 2.65%, to close at 7527.12.
Federal Reserve Chairman Jerome Powell said the central bank was ready to cut rates if the economic outlook deteriorated. No delay was offered, however. "We do not know how or when these business problems will be solved," Powell said. "We are closely following the implications of these developments for the US economic outlook and, as always, we will act appropriately to support the expansion."
The US expansion reached its tenth anniversary this month and will become the longest in the country ever recorded in July, eclipsing that of the 1990s. A reduction in the Fed's rate could help the current cycle continue.
Tuesday's rebound in the market was dominated by technology stocks, which were shaken the day before by the US government, which began to take a closer look at the tech giants to determine if they became too big and too powerful to stifle competition and harm consumers.
Apple
(ticker: AAPL),
Alphabet
(GOOGL)
Amazon.com
(AMZN), and
Facebook
(FB) lost Monday a collective market capitalization of 140 billion dollars. The Nasdaq Composite lost 1.6%, even as the Dow Jones Industrial Average closed slightly higher.
But the market may have panicked about the situation on Monday and Tuesday's gain erased the previous day's loss. Investors should have stocked FAANG shares instead of selling, according to Scott Galloway, a serial entrepreneur declared.
Galloway says for years that investors should push Alphabet, Facebook and Amazon in particular to break their business. According to Galloway, Alphabet should stop working, Facebook, Instagram and WhatsApp, and Amazon, its Web services, which could well be one of the 10 largest global companies.
Investors are also closely following President Trump's plans to impose tariffs on Mexican imports. The first deadline for the 5% tariff is set for June 10 and the rate would rise steadily to reach 25% in October if Mexico does not repress the migrants.
Mexico would be exploring possible retaliation against the American threat. Republican senators are also considering a ground vote on a resolution that would disapprove of Trump's national declaration of emergency and block proposed tariffs, according to press reports. Nevertheless, with the Mexican delegation in Washington this week, the country hopes to press for a negotiated solution to the border crisis and avoid tariffs.
The hot stock
Corteva
shares (CTVA) rose 11.85% to $ 27.75 due to the volatility of the Monday split that led to the creation of Dow,
DuPont
,
and Corteva splitting into three separate societies. The peak is unusual, as are three-way splits that take more than three years.
The biggest loser
Nektar Therapeutic
stock (NKTR) fell 3.35% to $ 32.92, likely after taking profits after the announcement of promising results for its clinical melanoma treatment program that pushed up the stock of 8.7 % on Monday.
–Sophia Cai
Write to Evie Liu at [email protected]
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