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market wrap may 3

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The Market Wrap for May 3: The Powell Put Is Still in Place

Aaron Levitt May 03, 2019

While the earnings season is in full swing, investors had another thing on their mind this week. And that was the Federal Reserve. This week, traders were treated to the latest FOMC meeting and its take on interest rates. Powell & Company have taken a dovish turn over the last few meetings and investors were expecting the central bank to keep that streak going. The Fed did not disappoint. This set up a bullish trading environment all week, which was supported by strong data across the board.

Various economic measures still showed a growing economy. But the data was not overly bullish that it would cause the Fed to raise rates anytime soon. Adding to this backdrop was strong earnings data from a variety of stocks. It seems that early estimates about poor earnings this quarter were overdone and many sectors are still growing.

An added bonus this week was a bunch of positive news on the trade war front, with China and the U.S. coming very close to signing a deal.

When it was all said and done, stocks continued to rise and hit new record/all-time highs.

Be sure to check out our previous Wrap here.

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