Posted By RichC on November 28, 2018
The Dow closed up 618 points on Wednesday after the Federal Reserve chief Jerome Powell indicated that "interest rates are just below the neutral level that neither aids or hinders economic growth." Investors looking for something positive as they wait hoping for some good news during the G-20 meeting between President Trump and China’s Xi Jinping. on U.S. trade with China.
The S&P 500, a broader index, closed up 2.3% and the tech heavier and hard hit Nasdaq closed up 2.95% which was a relief to investor who have seen 2018 gains disappear in the last several weeks. As most Americans know, the US economy is good, but markets are forward looking; they perceive slower growth ahead with plenty of obstacles to deal with … most out of their control.
A struggling world economy makes the U.S. a bit safer, but we do sell and trade overseas too. One big aggressive foe, China, has most of us concerned as tariffs and trade dominate the headlines. Another is the new Democrat controlled House of Representatives, which is seemingly bent on steering the US in an opposing direction Republicans have moved us. Hopefully these empowered DEMs will keep their frustration with President Trump in check and focus on with legislating some sort of compromises with so much unsettled business. I hope they are careful with the economy, taxes and spending in particular as we all lose if the economy slumps again.