Dow Jones, Russell 2000 Aiming Higher on Accommodative Fed, Fiscal Stimulus 2021-02-25 07:30:00 Daniel Moss, Analyst
Dow Jones, Russell 2000, Federal Reserve, Coronavirus-Relief Package, Inflation – Talking Points:
The Federal Reserve’s commitment to loose monetary policy conditions will likely underpin US equity markets.
Dow Jones is eyeing a push to challenge 33,000 after clearing key resistance.
Bull Flag continuation pattern hints at extended gains for the Russell 2000. Advertisement
Asia-Pacific Recap
Equity markets pushed higher during Asia-Pacific trade, as the Federal Reserve Chairman Jerome Powell reiterated the central bank’s accommodative monetary policy stance. Australia’s ASX 200 climbed 0.83%, Japan’s Nikkei 225 rose 1.67% and Hong Kong’s Hang Seng Index surged 1.75%.
nobody knows the answer. we re all looking at the markets, all have an opinion and be right or wrong at any given time. the bottom line is, you have an accommodative fed, low inflation. for the stock market, it doesn t get a lot better than this. neil: kimberly, i went back and look at press clippings of prior times like in the 30s. the rap against wall street was for a few that benefitted from it in an environment that produced 133 on the dow. we have similar arguments today. in the past couple days, the two days of the democratic debates, that it s tilted to the rich. wall street is their lay ground, not main street. many of them want to raise taxes. talk of elizabeth warren and others to start a trading tax, a wealth tax. bernie sanders wants to do the same to provide college for all.
wouldn t be looking at all of this. he said that and everybody plays politics with it. his argument is, you don t like me, you re staring at a crash what do you think of that? i tell you what, i think i would be careful about being too much of a cheerleader. markets have a funny way of slapping you in the face when you least expect it. i would say that whether he takes the credit or whether he deserves the credit, that remains to be seen. the reality is we have an accommodative fed, a good economy, good corporate profits. all the other negative issues you can t dismiss, they re real. at the end of the day, the market is looking at sound economic fundamentals and at the end of the day, neil, that s what drives stock prices. if this deal happens with china, maybe the market sells off on the news. you know, i don t know the answer.