Seeking Alpha

Stocks close mostly higher, shaking off brief post-FOMC dip

  • Stocks finished mostly higher, lifting the S&P 500 just shy of a new record and shaking off a brief slide that came after Fed meeting minutes showed increasing sentiment toward raising interest rates sooner than anticipated.
  • The Dow was supported by solid gains from Boeing and GE, while the Russell 2000 and Nasdaq underperformed.
  • “The center of gravity is moving gradually to the hawkish side," Oppenheimer Funds chief economist Jerry Webman says, believing the reaction in stocks wasn’t more negative because the minutes didn’t give a reason for pessimism about corporate earnings, which he says are the market’s main driver.
  • Today's hawkishness likely will be offset by a dovish tone in Jackson Hole, as Fed chair Yellen is set to speak at Friday's annual economic gathering there.
  • Participation remains on the light side, with ~530M shares changing hands at the NYSE.
  • Treasury prices slumped in reaction to the FOMC discussion on rates; the 10-year note fell 7 ticks with its yield climbing 3 bps to 2.43%.
Comments (0)
Be the first to comment
DJIA (DIA) S&P 500 (SPY)
ETF Hub
ETF Screener: Search and filter by asset class, strategy, theme, performance, yield, and much more
ETF Performance: View ETF performance across key asset classes and investing themes
ETF Investing Guide: Learn how to build and manage a well-diversified, low cost ETF portfolio
ETF Selector: An explanation of how to select and use ETFs