FYI: U.S. stocks turned lower after Jerome Powell failed to quell market concern that the Federal Reserve’s tightening path may be too aggressive in light of the recent sell-off.
The S&P 500 Index dropped more than 2 percent, with losses accelerating after the gauge crashed through its February intraday low, after policy makers raised rates. Treasury yields slid as the central bank lowered its forecast for hikes next year to two from three. Markets had been priced for just one. The dollar edged higher after falling as much as 0.4 percent.
By trimming the number of rate hikes they foresee in 2019, policy makers signaled they may soon pause their monetary tightening campaign. But investors had perhaps expected an even less aggressive approach after the U.S. stocks tumbled into a correction amid concern that global growth is slowing.
The Dow industrials were recently down 352 points, or 1.4%, at 23323, after falling as many as 513 points while Mr. Powell spoke. The S&P 500 fell 1.5% following the central bank’s announcement after rising 1.1% earlier in the day. The tech-heavy Nasdaq Composite dropped 2.1%.
Worries about higher interest rates and slowing economic growth have pushed all three indexes down more than 12% for the quarter and more than 9% this month. The S&P 500 is at its lowest level September 2017.
All eleven S&P 500 Sectors closed lower, led by Technology, Communication Services, and Consumer Discretionary.
Regards,
Ted
WSJ:
https://www.wsj.com/articles/stocks-edge-up-ahead-of-final-fed-decision-of-the-year-11545209521Bloomberg Evening Briefing:
https://www.bloomberg.com/news/articles/2018-12-19/your-evening-briefingBloomberg:
https://www.bloomberg.com/news/articles/2018-12-18/asian-stocks-look-mixed-after-choppy-u-s-session-markets-wrap?srnd=premiumMarketWatch:
https://www.marketwatch.com/story/us-stock-futures-climb-ahead-of-fed-meeting-trade-optimism-returns-2018-12-19/printIBD:
https://www.investors.com/market-trend/stock-market-today/nasdaq-closer-bear-market-interest-rate-hike/Reuters:
https://www.reuters.com/article/us-usa-stocks/wall-street-gains-ahead-of-fed-interest-rate-decision-idUSKBN1OI1DCCNBC:
https://www.cnbc.com/2018/12/19/stock-markets-dow-futures-edge-higher-federal-reserve-rate-decision.htmlU.K.:
https://www.marketwatch.com/story/heavyweight-glaxosmithkline-soars-on-deal-helping-drive-ftse-100-gains-2018-12-19/printEurope:
https://www.marketwatch.com/story/italy-leads-european-markets-higher-investors-hope-for-a-dovish-fed-hike-2018-12-19/printAsia:
https://www.marketwatch.com/story/asian-markets-mixed-ahead-of-fed-rate-decision-2018-12-18/printBonds:
https://www.cnbc.com/2018/12/19/bond-market-treasury-yields-lower-ahead-of-fed-interest-rate-decision.htmlCurrencies:
https://www.cnbc.com/2018/12/19/forex-us-dollar-near-one-week-low-ahead-of-fed-policy-decision-.htmlOil:
https://www.cnbc.com/2018/12/19/oil-us-wti-brent-climb-after-tumble-but-oversupply-worries-drag.htmlGold
https://www.cnbc.com/2018/12/19/precious-metals-gold-at-five-month-high-investors-await-fed-outlook.htmlWSJ: Markets At A Glance:
https://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
