Executive Mosaic’s GovCon Index total surged 1.01% to $4,666.38 as Wall Street turned festive. Investors celebrated after the Feds held rates steady, signalling the end of rate hikes. The Dow Jones rose more than 500 points (+1.4%) to close at a record high, while the S&P 500 and Nasdaq Composite gained 1.37% and 1.38%, respectively.
The pivot to possible rate cuts and the drop in the two-year Treasury yield to 4.57% helped buoy market sentiment. During his press conference following the FOMC meeting, Fed Chairman Jerome Powell said the central bank is willing to cut rates even if the U.S. economy doesn’t enter a recession in 2024.
“It could just be a sign that the economy is normalizing and doesn’t need the tight policy,” Powell adds. “It’s a good time for workers to find jobs and get solid wage increases.”
On the GovCon Index, only Parsons (NYSE: PSN) and Lockheed Martin (NYSE: LMT) closed in the red, although the losses were minimal. The Carlye Group (NYSE: CG), L3Harris Technologies (NYSE:LHX), and RTX (NYSE: RTX) led 28 gainers.
RTX’s Raytheon completed the live-fire demonstration of the advanced, 360-degree Lower Tier Air and Missile Defense Sensor or LTAMDS. The tactical ballistic missile live fire is one of RTX’s test event successes, including the cruise missile live fire test and the recently completed contractor verification testing.
Meanwhile, Powell said that the Feds will start discussing policy restraint and easing but are prepared to tighten again if there’s an unexpected return to recession. Otherwise, rate cuts could begin in June 2024, not later.
Market Summary
| INDEX | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| GovCon Index Daily Total | 4,666.38 | 47.18 | 1.01% |
| Dow Jones Industrial Average | 37,090.24 | 512.30 | 1.40% |
| S&P 500 | 4,707.09 | 63.39 | 1.37% |
| NASDAQ | 14,733.96 | 200.56 | 1.38% |
Top 5 GovCon Index Daily Percentage Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| CG | 38.9 | 2.00 | 5.42% |
| LHX | 208.08 | 7.77 | 3.88% |
| RTX | 83.22 | 2.18 | 2.69% |
| VVX | 45.17 | 1.15 | 2.61% |
| PLTR | 17.87 | 0.37 | 2.11% |
Top 5 GovCon Index Daily Net Performers
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| LHX | 208.08 | 7.77 | 3.88% |
| NOC | 485.01 | 5.76 | 1.20% |
| HII | 257.59 | 3.11 | 1.22% |
| GD | 255.85 | 2.65 | 1.05% |
| CACI | 328.69 | 2.54 | 0.78% |
Top 5 GovCon Index Daily Percentage Decliners
| SYMBOL | PRICE | NET CHANGE | % CHANGE |
|---|---|---|---|
| PSN | 63.64 | -0.10 | -0.16% |
| LMT | 451.44 | -0.19 | -0.04% |
| ACN | 343.64 | 0.42 | 0.12% |
| J | 128.98 | 0.38 | 0.30% |
| FLR | 38.8 | 0.19 | 0.49% |
