Friends
Yes, stocks fell again today. What was the cause of today’s bloodletting? Well, at moments like these, stocks do not need a reason to go down. Selling begets selling, and pessimism begets pessimism. Right now any news is bad news. Sentiment is so negative that even intraday rallies are being immediately sold.
Of course, we have an FOMC meeting starting tomorrow, and we will learn on Wednesday whether the Fed will be hiking rates a quarter of a percentage point. At this point, the Fed can’t win. If they don’t hike, they will be either accused of succumbing to the Presidents pressure not to raise rates, or market participants will be worried that the Fed sees more difficult times ahead. It’s ok for us to worry about the economy, but God forbid the Fed actually validates our concerns via holding rates steady on Wednesday. What is likely, is that the Fed will still go ahead and raise rates a quarter point on Wednesday, and in the statement turn much more dovish with regards to future rate hikes.
As for today, by the close the Dow Jones Industrial Average was down 507 points to finish the day at 23,592. The S&P 500 was down 54 points to close at 2,545. Gold was up $8 to trade at $1,250 per ounce, while oil was down $1.94 to trade at $49.26 per barrel WTI.
Buckle up, it’s likely to be a volatile week.
Have a nice evening everyone.
