After closing the previous day mixed despite the FOMC’s dovish shift, major equity indexes in the United States started the day modestly lower but didn’t have a difficult time erasing the losses and turning positive in the early trade. As of writing, the Dow Jones Industrial Average was up 0.25% on the day while the S&P 500 and the Nasdaq Composite were adding 0.25% and 0.37% on a daily basis.
A strong upsurge witnessed in the S&P 500 Technology Index, which was last up 1.35% on the day, seems to be helping Wall Street shake off the early bearish pressure. On the other hand, the rate-sensitive financials sector continue to underperform and erase 0.85% on the day. The dot plot yesterday revealed that the FOMC was not expecting any rate hikes in 2019 and only in 2020 to weigh on the Treasury bond yields. As of writing, the yield on the 10-year reference was at its lowest level since January 2018, down 0.85%.