Dow Posts 400-Point Tuesday
Markets were up across the board in trading today. Every major index rose over the course of the day, and the Dow posted the second-highest point gain of the year. The NASDAQ led in gains, posting a 2.73% bump that was fueled by a 128.01 point rise. The NASDAQ closed out the day at 4,811.93. The Dow jumped 390.30 points to close at 16,492.68. The S&P 500 split the difference, gaining 48.19 to close out the trading day at 1,969.41.
Netflix (NFLX) Continues to FallShares of Netflix (NFLX) stock continued to fall today.
World Bank's Chief Economist Asks for Fed DelayA chief economist for the World Bank joined the head of the IMF in asking for a delay to looming interest rate hikes from the Fed. They worry that a raise in the US prime interest rate could destabilize the already-shaky world economy. The concern is a valid one, especially since China has imploded over the past two weeks.
The rate hike could be coming as soon as later this month, when the Fed meets to discuss matters. There is also another meeting in December in which rates could be raised. There is already speculation that the rate hike will be delayed until the end of the year because of instability in the world economy.
When the Fed finally does act to raise the prime interest rate, it will affect the relative strength of the US dollar. Higher interest rates mean that the value of a dollar goes up, and raising rates is a deflationary move. The dollar is already stronger in comparison to many world currencies, so there is resistance to raising rates internationally.