Nov 28, 2018

What they're saying: Wall Street may be overreacting to Fed chair's speech

Fed Chair Jerome Powell speaks at the Economic Club of New York on Wednesday in New York City. Photo: Spencer Platt via Getty Images

The Dow Jones Industrial Average closed up 618 points on Wednesday, its best one-day gain since March (per CNBC), while both the S&P 500 and the Nasdaq Composite rose over 2% following a highly anticipated speech by Federal Reserve Chairman Jerome Powell in New York.

The big picture: There's no single reason for markets' surge, but some market-watchers say investors misinterpreted Powell's comment that interest rates were "just below" the neutral level to mean fewer interest rate hikes were on the horizon.

What they're saying:

  • Jared Bernstein, who served as chief economist under Vice President Joe Biden:
  • Ian Shepherdson, chief economist at Pantheon Macroeconomics:
  • Marc Chandler, chief market strategist at Bannockburn Global:
  • Gregory Daco, chief U.S. economist at Oxford Economics, tweeted, in part that it was "not correct" that markets saw Powell's comments has a signal that the Fed will no longer hike interest rates after December.

The other side:

  • Joe LaVorgna, chief economist for the Americas at Natixis:

Go deeper

Updated 7 mins ago - Health

World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

The number of deaths from the novel coronavirus surpassed 400,000 worldwide on Sunday morning, per Johns Hopkins.

By the numbers: Almost 6.9 million people have tested positive for COVID-19 worldwide and more than 3 million have recovered from the virus. The U.S. has reported the most cases in the world with over 1.9 million.

George Floyd updates

Protesters gather north of Lafayette Square near the White House during a demonstration against racism and police brutality, in Washington, D.C. on Saturday evening. Photo: Jose Luis Magana/AFP via Getty Images

Tens of thousands of demonstrators have been rallying in cities across the U.S. and around the world to protest the killing of George Floyd. Huge crowds assembled in Washington, D.C., Philadelphia and Chicago for full-day events on Saturday.

Why it matters: Twelve days of nationwide protest in the U.S. has built pressure for states to make changes on what kind of force law enforcement can use on civilians and prompted officials to review police conduct. A memorial service was held for Floyd in Raeford, North Carolina, near where he was born. Gov. Roy Cooper ordered all flags to fly at half-staff to honor him until sunset.

Updated 2 hours ago - Politics & Policy

Coronavirus dashboard

Illustration: Sarah Grillo/Axios

  1. Global: Total confirmed cases as of 3 a.m. ET: 6,898,613 — Total deaths: 399,832 — Total recoveries — 3,087,714Map.
  2. U.S.: Total confirmed cases as of 3 a.m. ET: 1,920,061 — Total deaths: 109,802 — Total recoveries: 500,849 — Total tested: 19,778,873Map.
  3. Public health: Why the pandemic is hitting minorities harder — Coronavirus curve rises in FloridaHow racism threatens the response to the pandemic Some people are drinking and inhaling cleaning products in attempt to fight the virus.
  4. Tech: The pandemic is accelerating next-generation disease diagnostics — Robotics looks to copy software-as-a-service model.
  5. Business: Budgets busted by coronavirus make it harder for cities to address inequality Sports, film production in California to resume June 12 after 3-month hiatus.
  6. Education: Students and teachers flunked remote learning.