Dow rebounds | Druckenmiller moves to Treasurys | Rate cut on the horizon?

TUE, JUN 04, 2019

EVENING BRIEF

AS OF TUE, JUN 04, 2019 • 04:02 ET

DJIA		25331.50
		+2.06%	+511.72

S&P 500		2803.22
		+2.14%	+58.77

NASDAQ		7527.12
		+2.65%	+194.10

Most Active

DOW
NAME	LAST	CHG	%CHG
AAPL	179.64	+6.34	+3.66%
MSFT	123.16	+3.32	+2.77%
INTC	44.79	+1.33	+3.06%

S&P 500
NAME	LAST	CHG	%CHG
AMD	29.57	+1.99	+7.22%
GE	10.00	+0.47	+4.93%
BAC	27.92	+1.24	+4.65%

NASDAQ
NAME	LAST	CHG	%CHG
AMD	29.57	+1.99	+7.22%
FB	167.50	+3.35	+2.04%
AAPL	179.64	+6.34	+3.66%

EDITOR'S NOTE

And just like that, stocks are rebounding. The Dow surged as much as 500 points Tuesday, partially thanks to signals from Fed officials that the central bank is open to easing monetary policy.

In a speech in Chicago, Federal Reserve Chairman Jerome Powell said the Fed is watching current economic developments and will do what's necessary to keep a near-record expansion going, CNBC's Jeff Cox reports. Powell did note that the central bank does not know "how or when" ongoing, tense global trade issues will be resolved. But it is "closely monitoring the implications of these developments for the U.S. economic outlook."

Federal Reserve Vice Chairman Richard Clarida also added to the optimism, telling CNBC's Steve Liesman that while the economy is in a good place, he and fellow central bankers are willing to take action if conditions change. Though he was noncommittal about future interest rate decisions, Clarida said he would be watching the trade war in particular and an inverted yield curve in the bond market for clues about the Fed's next move.

The comments come as expectations for a Fed rate cut are going up. The CME FedWatch tool indicates a 90% chance of a September rate decrease, while expectations for a second rate cut in December were above 80%.