FYI: U.S. stocks erased gains on Wednesday after a widely expected interest rate hike by the U.S. Federal Reserve and as investors bet that the central bank is approaching the end of a cycle of tightening monetary policy.
The market headed lower after that, wiping out its early intraday gains.
Jason Goepfert from Sentiment Trader notes that on the last 15 rate-decision days, the S&P 500 has ended the day in the red 60% of the time. Even on the days when the market closed higher, the gain was limited to 0.1% to 0.2%, except for Mar. 15, 2017 when the index rose 0.8% during the trading session.
The most recent seven Fed decision-days showed an even clearer pattern, where the market tended to slide in the afternoon after a morning rally.
Paul Hickey from Bespoke Investment pointed out the same tendency. He noted that on the rate-increase days since last September, the S&P 500 index generally drifted lower from noon to 1:30 p.m., gained ground as the 2 p.m. rate announcement approached, and then dived into the red by the close of trading. “It’s a small sample size, but something to keep in mind especially with futures already off their highs.” wrote Hickey in a note issued before the start of trading on Wednesday.
The recently formed communications-services and health-care sectors boost the market; Yields, dollar fall.
S&P 500 Sectors: Up/Down: Consumer Discretionary (U) Consumer Staples (U) Communication Services (U) Energy (D) Financials (D) Healthcare (U) Industrials (D) Materials (D) Real Estate (D) Technology (D) Utilities (D)
Regards,
Ted
Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2018-09-26/your-evening-briefingBloomberg:
https://www.bloomberg.com/news/articles/2018-09-25/asia-stocks-set-for-mixed-open-treasuries-fall-markets-wrap?srnd=premiumWSJ:
https://www.wsj.com/articles/global-stocks-mixed-ahead-of-fed-rate-decision-1537949633Reuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-extends-gains-after-fed-rate-hike-idUSKCN1M61L4IBD:
https://www.investors.com/market-trend/stock-market-today/why-stock-market-sold-off-fed/MarketWatch:
https://www.marketwatch.com/story/stock-futures-trade-modestly-higher-as-investors-await-fed-decision-2018-09-26/printCNBC:
https://www.cnbc.com/2018/09/26/us-markets-fed-decision-and-political-turmoil-in-focus.htmlEurope:
https://www.reuters.com/article/us-europe-stocks/european-shares-stay-at-four-week-high-before-expected-fed-rate-hike-idUSKCN1M60UFAsia:
https://www.reuters.com/article/japan-stocks-close/nikkei-extends-rally-to-8th-session-as-u-s-rate-hike-hopes-lift-large-caps-idUSL4N1WC2P4Bonds:
https://www.cnbc.com/2018/09/26/us-bonds-and-fixed-income-fomc-decision-in-focus.htmlCurrencies:
https://www.cnbc.com/2018/09/26/forex-markets-dollar-fed-trump-abe-talks-in-focus.htmlOil:
https://www.cnbc.com/2018/09/26/oil-markets-opec-us-sanctions-on-iran-in-focus.htmlGold
https://www.cnbc.com/2018/09/26/gold-markets-dollar-federal-reserve-in-focus.htmlWSJ: Markets At A Glance:
http://markets.wsj.com/usMajor ETFs % Change:
https://www.barchart.com/etfs-funds/etf-monitorSPDR's Sector Tracker:
http://www.sectorspdr.com/sectorspdr/tools/sector-trackerSPDR's Bloomberg Sector Performance Pie Chart:
https://www.bloomberg.com/markets/sectorsCurrent Futures:
https://finviz.com/futures.ashx
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