Friends
As all eyes are on the FOMC meeting which begins tomorrow, market participants are trying to determine whether inflation is going to get worse from here or not. Though analyst after analyst continue to show concern that inflation is here to stay, the stock and bond market are telling a different story. We’ve chronicled how yields have moved back down on the longer end of the yield curve, and today’s stock action sure doesn’t confirm the inflation narrative. Financials, Industrials and Materials all slumped while tech and growth stocks (the ones that would be most adversely affected by inflation so they say) moved higher during the trading session.
As for the overall market, by the close the Dow Jones Industrial Average was down 85 points, after being down much more during the trading session, to close at 34,393. The S&P 500 was up 7 points to finish the day at 4,255. The Nasdaq Composite Index was up 104 points to close at 14,174. Gold was down $12 to trade at $1,864 per ounce, while oil was up $.13 to trade at $71.04 per barrel WTI.
As mentioned the FOMC meeting begins tomorrow and ends with the Fed Statement on Wednesday afternoon. Market participants will be looking for any change of wording with regards to the Fed’s take on inflation and the possibility of tapering. This is anticipated to be this week’s big market mover. We will keep you apprised.
Have a nice evening everyone.
