![]() The stock market, it appears, didn’t take the hint. ![]() That being said, the Fed is still being much more aggressive about the expected rate increase trajectory than what markets expect over the near-term,” said Mychal Campos, Head of Investing at digital advisor BettermentĪhead of this week’s Federal Open Markets Committee ( FOMC) meeting, The Wall Street Journal reported that Fed officials had been pretty unhappy with the market’s positive reaction following the July rate hike.īetween the July decision and mid-August, the S&P 500 gained 10%-even though Fed Chair Jerome Powell went out of his way to underline that the Fed was committed to its campaign to crush inflation. “The market is pricing in more aggressive rate hikes, for sure. The 2-year Treasury continues to rise to fresh 20-year highs, at 4.195%, while the benchmark 10-year Treasury is 3.734%.Īccording to BofA Global Research, money is gushing into safe assets this week, which reported that inflows to ultra-safe money market funds jumped to the highest level since May. The inverted Treasury yield curve has only steepened since Wednesday, deepening worries about recession. The S&P 500 is only about 45 points away from the June lows, which marks a major watershed for stock markets. The S&P 500 and the Nasdaq Composite are off more than 1.7%, while the Dow Jones Industrial Average ( DJIA) is down 1.6%. ![]() The markets are still heading lower two days after the Federal Reserve delivered its fifth consecutive rate hike this year.Īs of midday Friday, the three leading equity indexes are all down more than 1.5%, following more losses overnight in Asia and Europe.
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