Wall Street’s Reaction Muted on Fed Rate Hold

Wall Street’s Reaction Muted on Fed Rate Hold

Wall Street’s Reaction Muted on Fed Rate Hold

$DIA, $SPY, $QQQ, $VXX

US stocks finished a bit higher Wednesday (DJIA +0.28%) after the Fed said it sees inflation rising this year, indicating it could boost interest rates in March.

The Fed kept rates unchanged but, in a statement following its 2-day FOMC policy meeting, it repeated that it expected that “further gradual” rate hikes will be warranted.

The Fed raised rates 3X last year and sees 3 more hikes in Y 2018 even as it continues to trim its balance sheet on a largely pre-set schedule.

The Fed’s acknowledgment of the quickening pace of inflation today put 3 hikes in Y 2018 into the ‘base-case’ and perhaps raises the prospects for a 4th.

Wednesday, the major US stock market indexes finished at: DJIA +72.50 at 26149.39, NAS Comp +9.00 at 7411.48, S&P 500 +1.38 at 2823.81

Volume: Trade on the NYSE came in at: 1.13-B/shares exchanged.

Breadth: Advancing issues outnumbered decliners on the NYSE by a 1.06-to-1 ratio; on the NAS, a 1.27-to-1 ratio favored decliners.

The S&P 500 posted 33 new 52-week highs and 3 new lows; the Nasdaq Composite recorded 78 new highs and 41 new lows.

  • NAS Comp: +7.4% YTD
  • DJIA: +5.8% YTD
  • S&P 500: +5.6% YTD
  • Russell 2000: +2.6% YTD
HeffX-LTN Analysis for DIA: Overall Short Intermediate Long
Very Bullish (0.50) Bullish (0.41) Very Bullish (0.50) Very Bullish (0.58)
HeffX-LTN Analysis for SPY: Overall Short Intermediate Long
Very Bullish (0.51) Bullish (0.43) Very Bullish (0.52) Very Bullish (0.58)
HeffX-LTN Analysis for QQQ: Overall Short Intermediate Long
Bullish (0.46) Very Bullish (0.53) Bullish (0.33) Very Bullish (0.50)
HeffX-LTN Analysis for VXX: Overall Short Intermediate Long
Neutral (-0.09) Neutral (-0.01) Neutral (-0.05) Neutral (-0.21)

Stay tuned…

The following two tabs change content below.

Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

Latest posts by Paul Ebeling (see all)

You must be logged in to post comments :  
CONNECT WITH