Novosti i prognoe: tržište kapitala od 03-10-2019

Major US stocks rose moderately amid growing expectations that the Fed will continue to soften monetary policy in order to support the growth of the US economy.

The stock market was under pressure for a short while after the publication of the Institute for Supply Management (ISM) report, which reflected a stronger than expected slowdown in the US services sector for September. According to the report, the non-manufacturing index fell to 52.6 in September from 56.4 in August. Although a value above 50 still indicates an expansion of the services sector, it was expected that the index would show a more modest decline - to 55.1. With a much larger decrease than expected, the index reached its lowest level since August 2016. This reinforced concerns about the growth of the US economy.

However, weak data from ISM contributed to higher expectations for the Fed to lower interest rates this month: according to CME FedWatch, the probability of rate cuts in October jumped to 90.3% from 77% on Wednesday.

Market participants also continued to monitor the development of the situation in trade. US President Donald Trump said today that the Chinese delegation will arrive in Washington next week to hold talks, adding that he has many options for dealing with China. “If they do not want to do what we want, then we have enormous opportunities for this,” Trump said.

In addition, the Trump administration announced plans to introduce tariffs of 10% for aircraft from the EU and 25% for other EU products, including French wine, Scotch and Irish whiskey, as well as cheese from all over the continent. The decision was made after the World Trade Organization (WTO) decided that the United States could introduce tariffs for European products totaling $ 7.5 billion in response to illegal EU subsidies for the Airbus aircraft manufacturing concern. The EU replied that they would like to reach an agreement with the United States in order to avoid a tariff war, but if the White House introduces new duties on products from the EU, they will be forced to introduce retaliatory measures.

Most DOW components recorded an increase (18 out of 30). Outsider turned out to be shares of JPMorgan Chase & Co. (JPM; -1.23%). The biggest gainers were Pfizer Inc. (PFE; + 1.93%).

All S&P sectors completed trading in positive territory. The conglomerate sector grew the most (+ 1.8%).

At the time of closing:

Dow 26,201.72 +123.10 +0.47%

S&P 500 2,910.66 +23.05 +0.80%

Nasdaq 100 7,872.27 +87.02 +1.12%