Friends
As expected the Federal Reserve raised the Fed Funds rate a quarter of a point today. That brings the range of Fed Funds to 4.50% to 4.75%. Interestingly in the press conference after the release the Fed Chair struck a somewhat dovish pose indicating that rate hikes are likely close to being done. What he didn’t give in on though is the idea of a quick pivot. The Fed’s stance is still higher for longer but the Fed Chair did allow that if economic data warrants, the Fed would have the room to become accommodating. All this was music to the ears of the bulls. Before the Fed release, stocks had basically surrendered all of yesterday’s gains. But as the press conference unfolded, stocks began to erase those losses and moved into positive territory. The Dow barely held its gains in the end but the S&P and Nasdaq did better.
By the close, the Dow Jones Industrial Average was up 6 points to finish the day at 34,092. The S&P 500 was up 42 points to close at 4,119. The Nasdaq Composite Index was up 231 points to close at 11,816. Gold was up $23.60 to trade at $1,969 per ounce, while oil was down $2.03 to trade at $76.84 per barrel WTI.
Remember, these Fed day moves have been fleeting in the recent past so let’s see if the bulls can follow through tomorrow. As for the bears, it’s been a difficult start to 2023.
Have a nice evening everyone.
