Financialbuzz.com 'Market Recap' Week Ending September 20th, 2019
- FinancialBuzz.com News Commentary
NEW YORK, Sept. 20, 2019 /PRNewswire/ -- U.S. markets opened lower on Monday following the attacks on Saudi Arabian oil facilities. On Sunday, crude oil prices surged by more than 10% after drone attacks targeted two major Saudi Aramco oil facilities. The attacks decimated more than half of the crude output from the world's largest exporter, affecting 5 million barrels of daily crude oil production. The Dow Jones Industrial Average declined by as much as 150 points on Monday from Friday's closing bell. Despite the attacks, Saudi Arabian Energy Minister Prince Abdulaziz bin Salman said on Tuesday that the country's oil supply levels were back to the same levels prior to the attack. Bin Salman also noted that the country's oil market will be fully back online by the end of September. On Tuesday, markets continued to edge lower ahead of the Federal Reserve's two-day meeting regarding interest rates. On Wednesday, markets opened higher after the Federal Reserve trimmed its benchmark interest rate to 1.75% from 2%, marking the second rate cut in the past months amid U.S.-China trade war tensions. Throughout Wednesday, the Dow declined by as much as 120 points following the Federal Reserve's decision. Shortly after, U.S. President Donald Trump expressed his displeasure about the quarter rate cut. Trump mentioned earlier in the week that he wanted the Feds to cut interest rates to "zero or less." Additionally, on Thursday, Trump told Treasury Secretary Steven Mnuchin to "substantially increase" sanctions on Iran following the attacks on the oil facilities. On Thursday, stocks edged higher by 100 points shortly after the opening bell as investors digested the Federal Reserve rate cut. Adobe Inc. (NASDAQ: ADBE), FedEx Corporation (NYSE: FDX), Chewy, Inc. (NYSE: CHWY), General Mills, Inc. (NYSE: GIS), Datadog, Inc. (NASDAQ: DDOG)
The Federal Reserve's decision to slash interest rates by a quarter percentage in an effort to prevent a slowdown in the global economic growth and hinder the possible impacts of Trump's trade policies. However, the U.S. and China resumed trade talks on Thursday, as officials from both nations met for the first time in nearly two months. The negotiations on Thursday and Friday are expected to layout a groundwork for high-level talks in October that will address the matter whether the two are able to reach a common agreement or result in additional tariffs. "The majority of market participants are still digesting the Fed, and we saw a quick shift of the focus back to the trade war," said Edward Moya, Senior Market Analyst at OANDA. "Markets thought this was supposed to be an easy week for trade," Moya told MarketWatch, but instead, the South China Morning Post reported that a senior White House official said tariffs on Chinese goods could go as high as 50 or even 100%.