Fed Meeting Minutes Send A Rocket Up The Markets A**

While many economists did not expect much from the “minutes” of the Fed, the summary of discussions at the last meeting caused a dramatic rebound. Erasing the losses of the previous day (and a little more).

The Dow surged from 7:45 p.m. up 235Pts straight to 17007 closing at 16994. This is the most powerful upmove of 2014 on a two hours timeframe and the largest increase of the year throughout the session (+ 1.64%).The Nasdaq soared 1.9%, a performance equal to that of the Russell-2000 where values ​​have fallen sharply since June, including ‘biotech’.

There were reported signals of a slowdown globally, and believes that the rise of the dollar should help to contain inflationary pressures (imports should be cheaper): ie ‘strong’ calls for an increase in rates later.

The “minutes” prompted Wall Street that if rates should go up, it will very gradually, and they may not exceed 2% by 2017 while the market was expecting more towards 3%.

It’s still strange that the “minutes” have addressed issues central to current concerns, and Janet Yellen has not said a word during the press conference.

Shortly after closing, the results of Alcoa (first quarter) emerged at the top of the charts with profits of 31 cents a share (against 11 cents and 22 cents expected) and a turnover up 8.2% to $6,24 against 5,85 anticipated.

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Pete Southern

About Pete Southern

Pete is an active investor with knowledge of all sectors but his first love are IPO's. A failed day trader who now understands research. A love of economics and writing seen Pete begin to publish content for various finance blogs. Our main editor and collator of contributions, he is your point of contact via editorial at stockpricetoday.com

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