FYI: It appears as if the markets saw this one coming.
The market reaction to the Federal Reserve was swift, but it was far from definitive in the first minutes. The S&P 500 index seesawed lower and then higher, before retreating to within a few ticks of where it had been sitting just before the Fed news hit the wire. Ten-year treasury yields fell, the dollar strengthened, and gold weakened somewhat.
The market moves came after central bank’s Federal Open Market Committee on Wednesday announced that it had unanimously agreed to raise rates for the first time since 2006, a move that was widely expected. And the Fed decisionmakers said they anticipated only “gradual adjustments” in rates in the future. None of it managed to surprise traders, and no major asset classes suffered anything approaching the “tantrums” that they threw after some earlier Fed meetings.
Now traders are turning their attention to Fed Chair Janet Yellen‘s press conference, which kicked off at 2:30 p.m. Eastern time.
Here’s a look at the snap reaction across some of the major asset classes. The charts are live and will continue updating as readers reload the page
Regards,
Ted
http://blogs.wsj.com/moneybeat/2015/12/16/see-markets-react-to-the-fed-rate-hike-in-8-charts/
