Posted on 09/21/2022 1:10:22 PM PDT by Signalman
Stocks fell in volatile trading Wednesday after the Federal Reserve raised rates by three-quarters of a point and forecast more sizable rate hikes in its fight against inflation, actions widely expected by traders.
With the S&P 500 down more than 8% in the past month and 18% for 2022 heading into Wednesday’s Fed actions, stocks were already pricing in an aggressive tightening campaign by the Fed that could push the economy into a recession.
The Dow Jones Industrial Average last traded 294 points lower, or 0.9%, after being up as much as 314 points. The S&P 500 dipped 0.7%, and the Nasdaq Composite traded 0.7% lower.
Stocks were volatile as traders parsed through the rate decision and the latest comments from Powell’s press conference.
The Fed raised rates by the widely expected 75 basis points and said it expects its so-called terminal rate to reach 4.6% to fight persistently high U.S. inflation. That’s the rate at which the central bank will end its tightening regime. The central bank also indicated that it plans to stay aggressive, hiking rates to 4.4% by next year.
“You can only steer the ship towards the storm for so long, but eventually there comes a time when you need to batten down the hatches and with the Fed’s third consecutive 75 basis point rate hike over the past four months, market participants should be looking for cover to weather the upcoming storm,” said Charlie Ripley, senior investment strategist at Allianz Investment Management.
Treasury yields popped on the news. The 2-year rate, which hit its highest level since 2007, last traded at around 4.1%. The 10-year rate jumped to about 3.6%.
All major S&P 500 sectors finished the session in negative territory, led to the downside by consumer discretionary and communication services.
30,183.78
−522.45 (1.70%)today
The Fed cleaning up the Biden mess.
I don’t think they should have a definitive target.
"My 401k is doing just fine as a 301k!""My 201k is up for the week!!"
"I will work another year or two."
"The markets always come back."
"The markets will shrug off the world-wide recession easily!
"At least my home is going up in val..... Oh shoot!"
Guessed that there was a lot of naked short selling to front run the expected big drop late today or tomorrow,
They have to raise rates because of totally an incompetent and unproductive delivery system and business management policies.
The way they are running it is scatter brained...
Should be down 1000pts tomorrow
But their ESG scores are lookin' real good!
Probably hasn't yet priced in the terrible recession and stagflation that will definitely happen in 2023. The other problem is that the market indexes will most likely remain flat for years.
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It will be below 30,000 if only briefly by tomorrow or Friday.
If not, I’ll be surprised.
Excellent!
Down another 2% today, and 20% year to date.. and we have not hit bottom yet. The federal reserve basically threw in the towel today on that so called soft landing they have been touting. Hard for the federal reserve to fix this, when Biden just passed the inflation increase act 2 weeks ago and threw a party on the lawn of the white house.. federal spending continues to increase at alarming rates.
But their ESG scores are lookin’ real good!
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A lot better than folks 201k’s and much better than when companies’ stocks go to zero or become penny stocks.
I just don’t see how they decrease balance sheet with 2trillion dollar deficits
Man I’m glad I neutralized my investments when I did......and I STILL lost $2k before I could get it stopped.
SMH
(and we have not hit bottom yet)
Yep
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Typical gouberment management. People are living on their credit cards cause the gouberment screwed up the oil industry to make everything more expensive and this will add to the pain for people.
Heard that overall sales are up 2%. ??????????? Actually down 40% but everything people buy cost 42% more.
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