On Monday Eastern Time, the three major indexes of the US stock market collectively closed higher, with the Dow Jones Industrial Average rising 0.53%, reaching a new historical high; The Nasdaq rose 0.4%, while the S&P 500 index rose 0.28%.
Most large tech stocks have risen, with Tesla, Apple, and Netflix soaring by over 1%. Among them, Apple reached a new historical closing high with a total market value of $3.59 trillion. The Trump concept surged, with the Trump Media Technology Group surging by over 31%, but falling nearly 11% after trading.
Meanwhile, Rumble has risen by over 20%.
On the news front, on Monday (July 15th) local time, Federal Reserve Chairman Powell stated that the economic data for the second quarter of the United States has provided policymakers with greater confidence that inflation is falling towards the central bank's 2% target, paving the way for potential interest rate cuts in the near future.
The Dow Jones Industrial Average hits a new historical high, while Trump concept stocks soar sharply
On Monday Eastern Time, the three major US stock indices collectively closed higher. As of the close, the Dow Jones Industrial Average rose 0.53% and remained above 40000 points, setting a new historical high; The Nasdaq rose 0.4%, while the S&P 500 index rose 0.28%.
Most large tech stocks rose, with Tesla, Apple, and Netflix soaring by over 1%, while Microsoft and Google saw slight gains; NVIDIA, Amazon, and Meta experienced slight declines. Among them, Apple reached a new historical closing high with a total market value of $3.59 trillion. The Trump concept has surged, with Trump Media Technology Group rising by over 31% and Rumble rising by over 20%.
Popular Chinese concept stocks generally fell, with the Nasdaq China Golden Dragon Index falling 3.64%. Baidu fell nearly 6%, iQiyi, JD.com, and Bilibili fell over 5%, Xiaopeng Motors, Weibo, and NIO fell over 4%, Ideal Auto and Pinduoduo fell over 3%, Vipshop and Alibaba fell over 2%, and Tencent Music, Manbang, and Futu Holdings fell over 1%. NetEase saw a slight increase.
Paving the way for interest rate cuts? Powell's tone has undergone a significant reversal
According to foreign media reports, Federal Reserve Chairman Jerome Powell stated on Monday that the Fed will not wait until inflation drops to 2% before lowering interest rates. In his speech at the Washington Economic Club, Powell cited the view that central bank policies are "long-term and variable lagging" to explain why the Federal Reserve does not wait until its goals are achieved before taking action.
CNBC
Powell said, "This means that if we wait until the inflation rate keeps falling to 2%, it is likely that we have waited too long. Because the ongoing tightening policies, or the degree of tightening that has been reached, are still having an impact and may push the inflation rate below 2%
Powell also stated that the Federal Reserve is seeking "greater confidence" that inflation will return to the 2% level. He said, "What can enhance this confidence is more good inflation data, and recently we have seen some such data
Powell also believes that currently, a "hard landing" scenario is not the most likely scenario to occur.
Monday was Powell's first public appearance since the June Consumer Price Index report showed a cooling of inflation and an actual decrease in prices compared to the previous month.
Powell stated at the beginning of his speech that he had no intention of sending a signal about when the Federal Reserve might start cutting interest rates. The next policy meeting of the Federal Reserve is scheduled to be held at the end of July.
Powell's remarks were made during a discussion with David Rubenstein, Chairman of the Washington Economic Club and co-founder of the Carlyle Group, where Powell had previously served.
Currently, the target range for the federal funds rate is between 5.25% and 5.50%. This figure is higher than 0% to 0.25% during the COVID-19 epidemic, and also higher than the range of 1.50% to 1.75% before the outbreak of the epidemic.
The federal funds rate directly or indirectly affects the cost of funds in the entire economy, such as mortgage rates. Powell joked, "People I don't know always say, 'Hey, let's cut interest rates.' Someone told me that in the elevator this morning
Powell also stated that he will remain in office until May 2026 and said he is very pleased to serve as Chairman of the Federal Reserve Board.
Powell also stated in response to questions that the Federal Reserve has started using ChatGPT to generate questions that may be asked at press conferences, but has not yet used it as a tool for formulating monetary policy.
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