Stock Market Update Wednesday, June 10th, 2020
Today all eyes were on the Fed.
Stocks dropped after the open, then moved sideways with traders waiting for the FOMC Statement and Press Conference this afternoon.
At 2pm ET the Fed voted to keep rates unchanged, with rates not expected to increase until late 2022.
Although there weren’t really any surprises in the Fed’s decision, the Fed predicts that the U.S. economy would likely see a 6.5% decline this year. And Fed Chair Jerome Powell said the recovery after the pandemic “is going to take some time.”
Stocks initially rallied after the Fed Statement. But after multiple attempts to push higher, the DOW and S&P dropped and ended lower for the second consecutive day.
But the NASDAQ was another story.
The NASDAQ closed above 10,000 for the first time in history! According to Marketwatch, it was the fastest 1,000 point move (from 9,000 to 10,000) since the year 2000.
Here’s where the major markets ended the day:
|*As of market close|
Stocks rallying on optimism over the reopening of the economy were hit hard today.
United Airlines (UAL) lost 11.0% and American Airlines (AAL) closed 8.3% lower likely due to profit taking after the massive rally in the past 2 days.
But companies like Slack (WORK) and Microsoft (MSFT) were winners, up 3.7% each as traders focused on companies that will benefit from the “work from home” movement. In fact today’s rally helped Microsoft finish at record highs.
Tesla (TSLA) crossed a major milestone as well today, busting past the $1,000 mark for the first time ever. Tesla ended the day with a 9.0% gain.
Here is the economic calendar for the week:
Real Time Economic Calendar provided by Investing.com.
This Stock Market Update was provided by Rockwell Trading Services LLC.