Friends
The combination of weak economic data, terrible price action in regional banks and the impending Fed rate hike tomorrow had stocks on the defensive from the opening bell. It’s as if the market was throwing a tantrum before the Fed even releases their statement tomorrow. Market participants are concerned that the Fed appears oblivious to the stress in the banking system, not to mention the overall economic deterioration that seems to be unfolding. We’ll see what the Fed Chair has to say about it all tomorrow. Perhaps he will project a cautious tone and hint that a pause is in the cards.
As for today, by the close the Dow Jones Industrial Average was down 367 points to finish the day at 33,684. The S&P 500 was down 48 points to close at 4,119. The Nasdaq Composite Index was down 132 points to close at 12,080. Gold was up $34 to trade at $2,026 per ounce, while oil was down $4.02 to trade at $71.64 per barrel WTI.
As mentioned, all eyes will be on Fed Chair Jerome Powell tomorrow. Man, there is a lot on his plate. The expectation is that the Fed will raise rates by a quarter point and then perhaps imply that they will pause after that. Given the unraveling in bank confidence it might be a good idea that the Fed takes a pause soon. I’m just sayin…
Have a nice evening everyone.
