Friends
An auto workers strike and a new narrative around the thought the market is prematurely pricing in rate cuts (we talked about this at our lunch on Wednesday-they probably are) sent stocks lower today as market participants prepare for next week’s FOMC meeting. The expectations are that the Fed will pause at this point and not raise the Fed Funds rate next week. That seems like the likely scenario and one that is already priced into the market.
As for today, by the close the Dow Jones Industrial Average was down 288 points to finish the day at 34,618. The S&P 500 was down 54 points to close at 4,450. The Nasdaq Composite Index was down 217 points to close at 13,708. Gold was up $11 to trade at $1,944 per ounce, while oil was up $.89 to trade at $91.05 per barrel WTI.
The bulls had been feeling pretty good about themselves entering today’s trading but remember seasonally this can be a very choppy period for stocks. Let’s see what the Fed has in store for us next week. Again, they likely will not raise rates, but what the Fed Chair has to say in his press conference will likely fuel the markets in either direction.
Have a great weekend everyone.
