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)|