(New York = Yonhap News) Correspondent Kim Hyeon of Yonhap Infomax = The New York stock market opened mixed a day before the opening of the September meeting of the Federal Open Market Committee (FOMC) amid political turmoil due to the second assassination attempt on former President Donald Trump, the Republican presidential candidate.
As of 10:30 a.m. on the 16th (local time) at the New York Stock Exchange (NYSE), the Dow Jones Industrial Average is recording 41,556.76, up 162.98 points (0.39%) from the previous day.
The large-cap benchmark Standard & Poor’s (S&P) 500 index is down 7.00 points (0.12%) from the previous day at 5,619.02, and the technology-heavy Nasdaq Composite Index is down 129.63 points (0.73%) at 17,554.35. The Russell 2000 index, which consists of small-cap stocks, is up 0.39%.
The major indices closed with a simultaneous rise on the previous trading day, the 13th. The S&P 500 and Nasdaq indexes rose for five consecutive trading days, recording their highest weekly returns since early November last year. It was a contrast to the first week, when the first trading day of September opened with a plunge and recorded the worst weekly performance of the year.
One of the major issues surrounding the market today is the assassination attempt on former President Trump that occurred the day before.
According to a police statement, the shooting occurred the afternoon before when Trump was playing golf at his golf course in West Palm Beach, Florida. The Secret Service (SS) said that while Trump was putting on the fifth hole, SS agents were checking security on the sixth hole, found a suspect with an AK-47 rifle, and shot him.
The suspect, identified as Ryan Wesley Rouse, 58, from Hawaii, fled the scene and was later arrested. The FBI is investigating the circumstances surrounding the incident, which it describes as an attempted assassination.
Trump was previously shot on July 13th while campaigning in Butler, Pennsylvania, but miraculously the bullet only grazed his ear. Immediately after the incident, Trump confirmed that he was fine and issued a statement saying, “I will never surrender.”
Market participants are awaiting the start of the FOMC’s September meeting, which is scheduled for a day later.
The Federal Reserve (Fed) is expected to put an end to its tightening monetary policy that has been in place since March 2022 at the September FOMC meeting on the 17th and 18th. The key issue is how much it will lower the current benchmark interest rate (5.25-5.5%), which is the highest level in 20 years.
While attention is focused on the extent of the rate cut, whether it will be 25bp (1bp = 0.01%) or 50bp, some analysts say that “the plan for future rate cuts and the explanation for them are more important.”
According to the Chicago Derivatives Exchange Group’s FedWatch tool, as of 10:40 a.m. today, there was a 41% chance that the Fed would cut rates by 25 basis points at the September FOMC meeting, and a 59% chance that a 50 basis point cut would occur.
Shares of semiconductor company Intel jumped more than 3% on Monday after the company said it could receive up to $3.5 billion in federal grants to produce military semiconductor chips for the U.S. Department of Defense.
Bausch & Lomb, an eye health company that produces contact lenses and related medicines, intraocular lenses and ophthalmic surgical equipment, saw its shares surge more than 14% after reports that it was considering a sale.
Real estate information platform Zillow raised Wedbush’s stock price by more than 4% after the company upgraded its investment opinion from “neutral” to “outperform,” saying that “falling mortgage rates could benefit the software and services business.”
Apple shares fell more than 2% after analysts at major banks Bank of America and JPMorgan speculated that demand for the iPhone 16 Pro models may have declined compared to previous years, based on delivery times for these products.
All stocks in the large technology group ‘Magnificent Seven’ opened lower, with Nvidia and Tesla also showing declines of 2%.
“Stocks have generally performed strongly in the early stages of a Fed rate cut cycle aimed at sustaining economic growth,” said Brian Belsky, chief investment strategist at BMO Capital. “As long as there are no significant problems with the U.S. economy, stocks will likely remain in a strong bull market.”
“However, the market has rallied so strongly over the past year ahead of the rate cut cycle that the increase may be relatively small compared to previous years,” he added.
European stock markets are also showing mixed sentiment today.
Germany’s DAX index fell 0.28%, the pan-European STOXX 600 index fell 0.09%, while Britain’s FTSE index rose 0.13%.
International oil prices showed an upward trend.
The price of West Texas Intermediate (WTI) crude oil for October delivery, the nearest month, is trading at $70.31 per barrel, up 2.42% from the previous day, and the price of Brent crude oil, the global benchmark for November delivery, is trading at $73.06 per barrel, up 2.02% from the previous day.
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What impact does political turmoil, such as an assassination attempt, have on market volatility?
Table of Contents
Market Volatility: New York Stock Exchange Opens Mixed Amid Trump Assassination Attempt and Upcoming FOMC Meeting
The New York Stock Exchange (NYSE) opened on a mixed note on September 16, with the Dow Jones Industrial Average rising 0.39% to 41,556.76, while the S&P 500 and Nasdaq Composite Index slipped 0.12% and 0.73%, respectively. The Russell 2000 index, comprising small-cap stocks, gained 0.39%. This cautious market sentiment comes amidst political turmoil following the second assassination attempt on former President Donald Trump, as well as anticipation surrounding the upcoming Federal Open Market Committee (FOMC) meeting.
Assassination Attempt on Trump
On the previous day, Trump was attacked while playing golf at his course in West Palm Beach, Florida. According to police reports, Secret Service agents intercepted a suspect, identified as Ryan Wesley Rouse, 58, from Hawaii, who was armed with an AK-47 rifle. Trump was unharmed, and the incident is being investigated as an attempted assassination. This marks the second time Trump has been targeted, following a previous incident on July 13 in Butler, Pennsylvania, where he was grazed by a bullet.
FOMC Meeting and Interest Rate Expectations
Market participants are eagerly awaiting the FOMC’s September meeting, scheduled to take place on September 17-18. The Federal Reserve (Fed) is expected to end its tightening monetary policy, which has been in place since March 2022. The key question is the extent of the benchmark interest rate cut, with expectations ranging from 25 basis points (bps) to 50bps. According to the Chicago Derivatives Exchange Group’s FedWatch tool, there is a 41% chance of a 25bps cut and a 59% chance of a 50bps cut.
Earnings and Sector Performance
In terms of sector performance, semiconductor company Intel saw its shares jump over 3% after announcing it could receive up to $3.5 billion in federal grants
What factors are influencing the mixed opening of the New York stock market ahead of the FOMC meeting?
New York Stock Market Opens Mixed Ahead of FOMC Meeting Amid Political Turmoil
The New York stock market opened on a mixed note on Monday, September 16, ahead of the highly anticipated Federal Open Market Committee (FOMC) meeting, which is scheduled to take place on September 17-18. The market’s performance was influenced by various factors, including the recent assassination attempt on former President Donald Trump and expectations surrounding the FOMC meeting.
Assassination Attempt on Trump Weighs on Market Sentiment
The attempted assassination of former President Trump, which occurred on September 15, sent shockwaves through the market. According to reports, Trump was playing golf at his golf course in West Palm Beach, Florida, when a suspect, identified as Ryan Wesley Rouse, 58, from Hawaii, was found with an AK-47 rifle. The Secret Service agents shot the suspect, and Trump was unharmed in the incident. This is the second assassination attempt on Trump, following a previous incident on July 13, where he was shot while campaigning in Butler, Pennsylvania.
Market Indices Show Mixed Performance
As of 10:30 a.m. on September 16, the Dow Jones Industrial Average was up 162.98 points (0.39%) at 41,556.76, while the Standard & Poor’s (S&P) 500 index was down 7.00 points (0.12%) at 5,619.02. The technology-heavy Nasdaq Composite Index fell 129.63 points (0.73%) to 17,554.35. The Russell 2000 index, which consists of small-cap stocks, rose 0.39%.
FOMC Meeting Looms Large
The FOMC meeting, which is scheduled to take place on September 17-18, is expected to be a crucial event for the market. The Federal Reserve is expected to end its tightening monetary policy, which has been in place since March 2022, and lower the benchmark interest rate. The key issue is how much the rate will be cut, with some analysts predicting a 25 basis point (bp) cut and others expecting a 50bp cut.
Analysts Weigh in on FOMC Meeting
According to the Chicago Derivatives Exchange Group’s FedWatch tool, there was a 41% chance that the Fed would cut rates by 25bp at the September FOMC meeting, and a 59% chance that a 50bp cut would occur. Some analysts believe that the plan for future rate cuts and the explanation for them are more important than the rate cut itself.
Select Stocks See Significant Movements
Shares of semiconductor company Intel jumped more than 3% on Monday after the company said it could receive up to $3.5 billion in federal grants to produce military semiconductor chips for the U.S. Department of Defense. Bausch & Lomb, an eye health company, saw its shares surge more than 14% after reports that it was considering a sale. Real estate information platform Zillow raised more than 4% after Wedbush upgraded its investment opinion from “neutral” to “outperform,” saying that “falling mortgage rates could benefit the software and services business.” Apple shares fell more than 2% after analysts at major banks Bank of America and JPMorgan speculated about the company’s sales.
Outlook for the Market
The market’s performance ahead of the FOMC meeting is likely to be driven by expectations surrounding the interest rate cut and the Fed’s forward guidance. The assassination attempt on Trump has added to the uncertainty, and market participants are waiting to see how the event will impact the market in the short term. With the FOMC meeting just around the corner, investors will be closely watching for any indications of the Fed’s future policy decisions.
Keywords: New York Stock Exchange, Federal Open Market Committee, FOMC meeting, interest rate cut, assassination attempt, Donald Trump, market indices, Dow Jones Industrial Average, Standard & Poor’s 500 index, Nasdaq Composite Index, Russell 2000 index, semiconductor, Intel, Bausch & Lomb, Zillow, Apple, Federal Reserve.
Meta Description: The New York stock market opens mixed ahead of the FOMC meeting amid political turmoil following an assassination attempt on former President Donald Trump. Market indices show mixed performance, with the Dow Jones rising 0.39% and the S&P 500 falling
