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Stocks turn lower as Fed hints at possibility of speedier rate hike

Jan. 28, 2015 4:20 PM ETBy: Carl Surran, SA News Editor13 Comments
  • Stocks turned sharply lower after the Fed reiterated it would be “patient” in raising interest rates but that rate hikes were "likely to occur sooner than currently anticipated" in the event of faster progress toward the FOMC’s employment and inflation objectives.
  • For those who like to parse the Fed's every word, it was an indication that the Fed is ready to be more hawkish than expected if necessary.
  • A renewed slide in oil prices sent energy stocks plunging (-3.9%), with crude oil shedding another 3.6% to $44.53/bbl as inventories surged.
  • Apple's big gain (+5.6%) was not enough to keep the Nasdaq positive, as a big opening advance slid into a sizable loss (-0.9%) by the close; the tech sector at least finished near the flat line while nearly all other sectors struggled.
  • Today's participation was slightly above average, with 835M shares changing hands at the NYSE floor.
  • U.S. Treasury bonds soared after the Fed statement, with the 10-year yield tumbling 10 bps to 1.73% and the 30-year yield dropping 11 bps to register its lowest close on record (2.28%).

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