Stocks pared earlier gains Thursday, but still closed higher in the wake of Wednesday's post-Fed selloff. Investors continued to evaluate yesterday's comments from Federal Reserve Chair Jerome Powell, who indicated an end to rate hikes could be near, as well as concerning bank deposit commentary from Treasury Secretary Janet Yellen.
There was nothing particularly unexpected in the Fed's decision to hike rates by 25 basis points on Wednesday, nor did Powell's subsequent presser reveal anything that hasn't already been said by the Fed chair and his central bank colleagues – other than suggesting that its rate-hike campaign could end soon. Still, all three major indexes slumped roughly 1.6% each yesterday thanks to significant late-session selling. Some observers pinned the blame on Yellen, who said during congressional testimony that she hadn't discussed anything to do with blanket insurance or guarantees of all deposits.
"Fed Chair Powell started the press conference by noting that the banking system is sound, but Treasury Secretary Yellen put a wrench in that idea," says Edward Moya, senior market strategist at currency data provider OANDA, adding that it "sounds like we are nowhere near having a debate on whether to raise [the] FDIC limit above $250,000."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
But today, the stock market soared early on before turning lower in late-afternoon trading. Still, the Dow Jones Industrial Average finished up 0.2% at 32,105, the S&P 500 gained 0.3% to 3,948, and the Nasdaq Composite added 1.0% to 11,787.
In single-stock news, Square parent Block (SQ) fell 14.8% after noted short seller Hindenburg Research said it is betting against the fintech stock, and accused the company of fraud. Coinbase Global (COIN) was another notable decliner, sinking 14.1% after the cryptocurrency exchange platform received a Wells notice from the Securities and Exchange Commission (SEC). This is a letter sent by the SEC to inform a company the regulatory agency has identified possible violations of securities law.
Amazon stock among Wall Street's biggest long-term outperformers
How can investors pick the best stocks to buy? That's an age-old question that if anyone were able to answer would make us all rich. In reality, success in stock trading comes from many things, including education, research and a lot of luck.
Another aspect behind successful investing is time. Don't take it from us, take it from Warren Buffett. "Our favorite holding period is forever," the Oracle of Omaha famously said. We've recently started a series investigating some individual stocks that have produced outstanding returns for investors over the past 20 years. Nvidia and Apple – which happens to be one of Warren Buffett's favorite stocks – top the list, as does Netflix.
Most recently, we ran the numbers on Amazon stock. While the e-commerce giant has lost nearly $900 billion in value since its all-time high, it has still created outstanding returns for long-time shareholders.
-
What’s the New 2026 Estate Tax Exemption Amount?Estate Tax The IRS just increased the exemption as we enter into a promising tax year for estates and inheritances.
-
The Economy on a Knife's EdgeThe Letter GDP is growing, but employers have all but stopped hiring as they watch how the trade war plays out.
-
Trade Uncertainty Sparks Whipsaw Session: Stock Market TodayVolatility is making a cameo here in mid-October, a generally positive month marked by its historic stock market events.
-
Banks Are Sounding the Alarm About StablecoinsThe Kiplinger Letter The banking industry says stablecoins could have a negative impact on lending.
-
Dow Adds 587 Points as Stocks Bounce: Stock Market TodayThe main indexes rebounded sharply Monday after President Trump took a calmer stance toward China.
-
Dow Dives 878 Points on Trump's China Warning: Stock Market TodayThe main indexes erased early gains after President Trump said China is becoming "hostile" and threatened to cancel a meeting with President Xi.
-
S&P 500 Hits New Highs as Rally Resumes: Stock Market TodayTech stocks were the biggest gainers on Wall Street today, with Nvidia and Dell making notable moves.
-
Rally Fades on Mixed AI Revolution News: Stock Market TodayAll three main U.S. equity indexes opened higher but closed lower as a seven-session winning streak for the S&P 500 came to an end.
-
S&P, Nasdaq Hit New Highs: Stock Market TodayA late-day rally wasn't enough to lift the Dow into the green as its six-session winning streak came to an end.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market TodayThe lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
