[Chart courtesy of MarketWatch.com]
- Moving the Markets
An early rally, ahead of the Fed minutes, fizzled after their release with the S&P 500 kissing its unchanged line before rebounding and ending up slightly in the green. The Dow and Nasdaq followed suit in similar fashion.
Contributing to some turmoil was President Trump’s decision to disband his advisory panel while political tensions were casting doubt on his pro-growth plans. Then it was the Fed’s turn as the minutes showed that the Central Bank is struggling with sluggish inflation, which could mean either limited or no rate hikes in the near future, while they remain eager to start unwinding their $4.5 trillion asset portfolio.
Across the ETF spectrum, domestic equities headed higher led by MidCaps (SCHM) with a gain of +0.35% followed by Dividend ETFs (SCHD) with +0.24%. Things looked better on the International side where the Emerging Markets (SCHE) took top billing with +1.19% followed by SmallCap International ETFs (SCHC) adding +0.67%.
The Fed’s dovish statement helped interest rates to fall allowing the 20-year bond (TLT) to rally +0.37%. The US dollar (UUP) traded in a broad range but closed lower by -0.33% wiping out the gains of the last two days.