US Stocks Finished Virtually Flat After Post-Election Spike
$DIA, $SPY, $QQQ, $RUTX, $USO, $VXX
Stocks in the US drifted Thursday after the big rally Wednesday.
The S&P 500 slipped 0.3% Thursday in the wake of the FOMC decision to leave the fed funds rate unchanged as expected. The benchmark index traded slightly below its flat line leading up to the Committee’s statement release, dropped to session lows before recouping some losses.
In its statement, the FOMC said it expects further gradual rate hikes that are consistent with sustained economic growth, strong labor market conditions, and inflation near its symmetric 2% target over the medium term.
The hitch is that the FOMC statement acknowledged business fixed investment has moderated, the Q, can it be considered dovish?
The Fed’s statement did not derail expectations for another rate hike in December, which would be the 4th hike in Y 2018, with the CME FedWatch Tool putting the chances at 77.8%, down slightly from 80.8% Wednesday.
Consequently, the yield on the Fed-sensitive 2-yr T-Note jumped 4 bpts to 2.97% its highest mark since June 2008. Also, the benchmark 10-yr yield added 2 bpts to 3.23%, and the U.S. Dollar Index rose 0.7% to 96.68.
The stock market
Over 50% of the 11 S&P sectors finished with losses Thursday
The energy sector (-2.2%) led the retreat and is now the 2nd worst-performing group this Quarter. The Crude Oil-sensitive group has fallen in tandem with WTI Crude Oil, which dropped another 2.4% Thursday to $60.68 bbl, way off of its 4-year highs hit in October.
Thursday, the major US stock market indexes finished at: DJIA +10.92 at 26191.22, NAS Comp -39.87 at 7531.08, S&P 500 -7.06 at 2806.97
Volume: Trade on the NYSE came in at 825-M/shares exchanged
NAS Comp +9.1% YTD
DJIA +6.0% YTD
S&P 500 +5.0% YTD Russell 2000 +2.8% YTD
HeffX-LTN’s US Major Stock Market Market Indexes Technical Analysis