Friends
The markets have been wary of the results of today’s Fed meeting worrying that the Fed Chair might just mention the possibility of actual rate hikes if inflation doesn’t behave. Well, the Fed Chair pretty much dismissed the likelihood of a rate hike this year but did indicate that his confidence that inflation is going to continue to head lower has been shaken a bit lately. It still seems most likely that the next change in interest rates will be lower but when that happens and how gradual it will be is totally up for grabs.
The markets appeared to be at ease with the today’s Fed results as stocks moved higher after the Fed announcement and the subsequent Fed Chair press conference. But those lofty gains were mostly surrendered by the close. For the day, the Dow Jones Industrial Average was up 87 points to close at 37,903. The S&P 500 was down 17 points to finish the day at 5,018. The Nasdaq Composite Index was down 52 points to close at 15,605. Gold was up $23 to trade at $2,326 per ounce, while oil was down $2.78 to trade at $79.15 per barrel WTI.
Will the markets take the Fed Chairs cues that rate hikes aren’t likely, unless the data changes drastically? If rate cuts are coming, then is it important to how quickly that happens? There are a lot of questions as we look into the coming months. And then we head into political season. We have a lot on our investment plate as 2024 continues to unfold. Stay tuned.
Have a nice evening everyone.
