real-time news and commentary for investors
Thursday, Sep 19
Stocks slip as Fed euphoria fizzles
- Stocks pulled back to consolidate yesterday's Fed-induced gains, as investors try absorb the lack of tapering and decide what it means.
- Today's pause demonstrates how investors are plotting their next moves rather than rushing to buy into a market that has seen the Dow rise nearly 6% so far this month and 19% YTD.
- Defensive sectors, the biggest beneficiaries of the Fed's U-turn, led decliners; home builders, which also surged yesterday, suffered sharp declines.
- Treasury prices fell after a batch of stronger than expected economic data (I, II, III), with the 10-year yield rising to 2.75% after tumbling to a five-week low yesterday.
- Crude oil futures slid 1.5% to settle at $106.39; gold continued to move, jumping 4.7% to $1,369.30.