[Chart courtesy of MarketWatch.com]
- Moving the markets
Early market exuberance faded late in the session with only the Dow and Nasdaq clinging on to modest gains, while the S&P 500 slipped slightly into the red. The Fed raised the benchmark Fed funds rate by 0.25%, as expected, which was the fourth hike in the past year. The much awaited 2018 forecast in regards to inflation and interest rates was a nothing burger, as they stuck to previously announced plans to hike rates three times.
As a result, equities pulled back and our ETF space ended up with mostly green numbers. Taking leadership was Emerging Markets (SCHE) with a solid +1.02% with International SmallCaps (SCHC) occupying second place with +0.58%. On the downside, we saw a reversal in that Financials (XLF -1.24%) gave back yesterday’s gains; also ending in the red was MidCaps (SCHM) with -0.21%.
Interest rates took a dive with the yield on the 10-year bond losing 4 basis points to 2.36%. That allowed the 20-year bond (TLT) to rally +0.75% and reversing a two-day downtrend. Gold glittered today by adding a solid +1.32%, but it ended the session just short of reclaiming its 50-day M/A. The US Dollar (UUP), on the other hand, took a dive by losing -0.69%, which was its first down day in 7 sessions. It also meant that it broke back below its 50-day M/A.