Markets
Here are today’s market moves:
S&P 500 down 0.54% to 4,223.70
Dow Jones down 0.77% to 34,033.67
Nasdaq down 0.24% to 14,039.68
Bitcoin: $38,292
US10Y: 1.586%
What Happened?
The S&P 500 and Dow Jones fell today as the Fed left its monetary policy unchanged but indicated they expect to raise interest rates by late 2023, sooner than expected.
While all Fed officials see rates unchanged through 2021, the central bank’s change in tone is a wake-up call to the market.
The Fed maintained its statement that the recent burst of inflation would be transitory. Consumer prices jumped 5% in May from a year earlier, the highest annual inflation rate in 13 years.
Higher interest rates are usually bad for risk assets such as stocks, but some analysts are looking on the bright side: 0% interest rates until late 2023.
That means equities could have more room to run over the next few years.
What Else?
This Week
Monday: Earnings expected from Hexo Corp.
Tuesday: Earnings expected from H&R Block and Oracle.
Wednesday: Earnings expected from Honest Co and Lennar Corp.
Thursday: Earnings expected from Adobe and Kroger. FOMC rate decision. Weekly jobless claims.
Friday: Bank of Japan monetary policy decision.