After a slow start, stocks were higher ahead of today’s Fed Statement. And at 2pm ET, the Fed announced the 3rd rate hike this year.
The decision was expected, and at first, stocks rallied.
But 24 minutes after the rate hike, and just minutes before the Fed Press Conference, stocks started to drop. The major indices continued their slide after the press conference. But the real push lower came during the last 30 minutes of the day and pretty much continued into the close.
From the high after statement to today’s low rate before the close, the S&P dropped 28 points!
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The Fed’s decision to raise rates by 25 basis points puts the benchmark overnight lending rate in a range of 2.00-2.25%. The word “accommodative”, actually the removal of the word from the Fed’s policy statement, created some uncertainty amongst traders. But it looks like traders are expecting that the Fed will raise rates again in December. Based on Fed Funds Future, traders believe there is a 79.2% chance the Fed will raise rates at the December meeting.
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Here’s where the major indices ended the day:
- The S&P finished 0.3% lower. Down 10 points, the S&P ended at 2,906.
- The DOW ended with a 0.4% loss. Dropping 107 points, the DOW closed at 26,385.
- The NASDAQ was down 0.2%. With a 17 point loss, the NASDAQ finished at 7,990.
- Bitcoin finished 3.6% lower. Down $240, Bitcoin ended at $6,375.
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Crude Oil (CL) finished lower today, and the recent 3-day win streak comes to an end. Down 1.0%, CL ended at $71.59 a barrel. Today’s Crude Oil Inventories showed a 1.9 million barrel increase in inventories, compared to the 0.7 million drop in U.S. stockpiles that was expected.
In earnings news, Nike (NKE) slide, in spite of better than expected earnings. Nike lost 1.3%.
Today was the first trading day for SurveyMonkey (SVMK). The company finished its first day of trading 43.7% above its IPO offering at $12.00/share.
Source: RockwellTrading by Markus Heitkoetter | Original Link