Market Performance on Fed Days

Today is sure to be another fun-filled Fed day, and below we highlight the performance of the S&P 500 on rate decision days since the tightening period that began way back in June 2004.

Since 6/04, the S&P 500 has averaged a gain of 0.33% on Fed days. Since the 50 basis point cut on 9/18/07, Fed days have seen the S&P 500 average a gain of 0.56%, with up days half of the time. And in 2008, the S&P 500 has averaged a gain of 0.57% on Fed days, but there have been more down days than up days.

The last two Fed days (one scheduled and one inter-meeting) have seen the S&P fall by 1.11% and 1.13%. The three Fed days prior to the last two all saw nice gains.

Comments

[maelstrom:]

I have a new appreciation of technical data and the work involved . Thank you

2008 Dec 16 10:29 AM

[Asbytec:]

Seems Fed days are fun days, until the hangover. I know he's trying to stimulate the markets, but it's all in vain. Give it a few days, they will tumble and return to volatility.

The major difference this time its not so much about appetite or aversion, but yields. So, support for the dollar may be waning.

The US dollar, the world's sacrificial lamb, can cause such a stir. Now, let's see the euro try that trick. Let see if they can cut to stir the markets, even if only for a day.

2008 Dec 17 08:34 AM