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Dow, S&P 500, Nasdaq rally on sign of hope for Fed pivot

Mar. 02, 2023 4:14 PM ETS&P 500 Index (SP500), DJI, US10Y, US2YCRM, SICPBy: Brian Stewart, SA News Editor70 Comments

Wall street sign in New York with New York Stock Exchange background

naphtalina/iStock via Getty Images

Gaining traction in the middle of the day amid comments from a Federal Reserve official that were perceived as dovish, the major U.S. equity averages finished higher on Thursday. This allowed the S&P 500 and Nasdaq to halt

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Comments (70)

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Feds Schmeds. Get them out of the business of "controlling" the private sector economy. A stable currency is all they should worry about (and that had better not be crypto).
I'm really sick and tired of these fed officials constantly yapping.
firstaidkit profile picture
"FED PIVOT" - What Rubbish Is This?
The Fed has to raise rates in order to harness the inflation. If it does not, and inflation rate remains high or continues to increase. What reduces inflation in the end, higher interest rates, will be hard on the market. The medicine will be bitter but is a must take. Learn how to preserve your investment under these new threats.
@firstaidkit yeah. Pause and pivot.

Since Russia’s invasion of Ukraine, the U.S. oil and gas sector has boosted exports to the point where the U.S. is at the top of the world’s energy exporting nations.

This week new data from the U.S. government showed the U.S. exported a record 11.1 million barrels a day of oil and refined products.
“It’s amazing to think of all those decades of concern about energy dependence to find the U.S. is the largest exporter of LNG and one of the largest exporters of oil. The U.S. story is part of a larger remapping of world energy". We won't need oil in 10 years so better sell it all now.
firstaidkit profile picture
@Phil Dumfee "We won't need oil in 10 years..."
Sarcasm at it's best, I hope, because when they find out this electric car takeover won't takeover that's one thing; but when the numbers for all the other needs for oil come into view, I think the reduction in gasoline requirements won't counter balance the requirements for the demand in the other needs remaining.
Powell could take care of this foolishly clinging stock market anytime but chooses to let the fantasy live on. Inflation is stronger than expected (as it has been for years now) and rates will have to keep moving higher. The inevitable stock market bottom is being pushed out needlessly by many months.
elwalle profile picture
What's really important is what the FED whisperer is thinking
Ishi Kenjo profile picture
Why no articles about the coming lawsuits against Norfolk southern? How much vinyl chloride was burned? How many are sick? How many dead animals? Nope SA will continue with the same dozens of articles aboutTsla, Cathie Wood, chat got, and other kicked horse crap. Grow a pair and counter the cover up of a disaster affecting multiple states and waterways!!! I expect more from SA.
howard2374 profile picture
@Ishi Kenjo While I concur with your wanting to know about the train disaster, that type of news, is not the focus of SA. Nor should it be. and BTW, I don't see Sports Illustrated covering the Ohio train disaster either.
Headline should read computer algorithms triggered buying after Fed speaker talks. Tomorrow headline will read market is down on profit taking, or bond yields rising. Blah, blah, blah…Hope is not a plan. Going to buy more T-bills for my ladder because short term yields are over 5% and state tax free. GLTA!
LifelongMetsfan1 profile picture
Ugh! So silly! The Fed. has said how many times it will continue! Stop already with the shock and surprise every time Fed. Increases rates! It is not shocking or suprising! Just sit back and let the Fed out do it’s thing. Please your eating into my retirement accounts! It’s enough already.
sethmcs profile picture
The way to get inflation down is to get the interest rate above the inflation rate and hold it there. Debt defaults and layoffs would be helpful too. Debt destruction is needed. I am not seeing any of that yet so the beatings will continue until moral improves.
Skip_Town profile picture
Trust the bond guys.
Screw any factor from the real economy! The fed speakers oldest nephew blinked twice after recess yesterday! That certainly means they might taper like….tomorrow! Buy! Buy! Buy!
5% CD's are looking really really good right about now. Get about 30-50k on 500k-1 million dollars. Take the profit and go do something nice while the market takes it time to "crash" like the dotcom bubble. Just a prolonged slow drop. The worst kind as there are to many bear market rallies to get suckered into.
@ddssq dang wish I had 500k cash. Got it all tied up in stocks
@Peterso21 you can also buy 1000$ CDs :)
StevenK1 profile picture
@wboz or a $1,000,000,000 coin.
CD and Treasury yields keep rising and buying short term-3 month notes and rolling them over is all I can figure. I nibble in a few longer term notes up to 2 years now that they're paying over 5% FDIC insured for whatever that means. I've noticed the markets have been manipulated daily by so-called "news" up and down but really overall markets are still way overpriced and loaded with BS companies. A lot of actual companies are private or held by private equity leaving a ton of garbage in public SEC regulated stocks etc. Since I'm over 71 and have seen Empires collapse like the British Empire-largest in human history, USSR, etc. I wonder are we like Rome rotting from within? Inflation was a huge signal the Roman Empire was heading south. USA is largely based on Rome and John Adams, Jefferson, etc. cited Cicero. Cicero had his head chopped off! Yikes!
Most profitable business on earth has been illegal drugs and they sure seem to be flooding in the USA and corrupting a lot of honchos at the top and even laundering money threw the banks and stock markets. The real economy mostly was outsourced to China etc. starting back in the 1970's.
I figure they have a ways to go before rates stop rising. Locking up yield longer term when they do is the real game.
@D. Rockefeller The USA has been done for a while. What you see now is what some dubbed an “economic zone” or a place dictated by corporate interest for the benefit of the corporation. There isn’t much in terms of unique culture here, we have a stagnating population that is budding up against an influx of minorities which will be used to cheapen labor ect. Unions are hard to come by and most companies don’t need to have a national allegiance in a global economy. I think the USA will be okay in terms of gdp, but the actual workers and middle class are done for (just my opinion tho).
@D. Rockefeller Rome has survived total decadence (cultural and economic stagnation, no innovation, repetition, etc.) for hundreds of years until it went down. I am afraid the West is only at its beginning. Central banks will assure centralization of wealth at the top through money printing/asset price inflation, look around you, a few, very rich guys/families getting richer every day and the rest is struggling.
LifelongMetsfan1 profile picture
@Legitimate I think the world’s economies are going to change so much on the next 10-20 yrs. it is almost impossible to predict market conditions, employment and the very idea of “work.” AI, crispr medical cures, autonomous vehicles, power storage supplies, 3D residential printers that “make” your purchases in your home. Ex. need a new tool? You purchase the 3D printing plans” for that tool, download plans into your residential 3D printer and togr new tool is made right in front of your eyes.
And yet Alpha also carried

"Peak policy rate should exceed 5.4% if data stays hot, Fed's Waller says
Today, 4:30 PM", this afternoon,

Who you going to believe? I think the one who votes!

Let's face the fact that last year's Fed call of "Inflation is Transient" by J. Powell was one of the worst ever, and they are still behind the curve in lowering inflation, as evidenced by rising mortgage interest rates, slowing housing markets, persistent food and energy inflation, with workers wages still rising moderately just to keep up with prices. I would prefer if they would all just shut up, and quit talking so much! Also the Biden administration runaway spending is the cause of all this inflation in the first place, not mention their anti-fossil fuels energy policies.
@mmt59 While I'm not a big fan of "Unguided Missile" Joe and his cabinet appointments, please put the budgetary mess blame where it belongs. Congress. You can't blame Biden for executing what Congress has decreed, that's literally his job.

People vote for politicians promising them the most free stuff. So here we are, and there we go.
@Leo Plotkin Yes Leo, Congress does pass these huge spending bills, but remember President Biden does have the Veto power to stop them and out of control spending, yet he chooses to go along with all the free stuff give aways. It is also his job to represent all the American people, including the workers, and families out there, not just the democrats. Most of these huge spending bills had no republican votes, except for the last infrastructure bill in Dec. 2022.
@mmt59 Presidents don't have line item veto power. To veto over-reaching pork legislation he risks angering his base. Yes, he champions the giveaways as the head of his party. But those sales are also his job.

Trump couldn't veto the first COVID spending sprees passed by Congress, so it's silly to expect Biden to.

Still, the main source of the blame is not him. It's the leftists people demanded and received in their misguided belief that government overreach will improve their lives.

Our job is to try and shelter our assets from the gathering storm.
What a joke. It is manipilated so easily.
Is he still doing trades and not reporting them?
Money&Money,LLC profile picture
The manipulation is so clear to see. Whenever the market goes down far enough, they trot a stooge out to make some comment to give "pivot" hopes to the rocket emogi group and the 'get rich quick" group....Then after a unwarranted, and nonsense rally.....they start trotting stooges out again to make hawkish comments..... Rinse and repeat
@Money&Money,LLC Tell that to Avi.
MoneyPig profile picture
Rates will stay high and go higher for as long as Biden is president. His policies are the problem. So, get used to high, going higher rates. Biden is clever. He is focusing on individual debt capacity. Not something understood by the public. See, he learned something, how to dupe you.

Politics always overlaps the economy, BECUASE, the government puts fairness into the economy, or as things are today, elected officials work the system to get reelected. Biden WON'T fix the student lending problem. He doesn't care. What he wants is to increase their borrowing capacity overnight to get reelected.
You are right, just wait until the Executive Orders on ESG ripple through the energy companies.
He’s the FED member for the blackest seat on the board. Interest hikes affect minorities more significantly. This is a big reach. SMH. He’s not even a voting member. Keep grasping for straws.
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