Stocks decided to give up the gains market participants fought hard to achieve earlier in the week in the lead up to the Fed decision. Whether because of the confusing new Fed “mandate” or just the realization of a global slowdown, stocks sold off overseas before our opening and we continued the global selloff. Basically, the Fed declared yesterday that despite domestic improvement, it can’t be trusted in light of the continued weakness globally, specifically in China.
Whatever the case, stocks fell and by the close, the Dow Jones Industrial Average was down 289 points to finish the day at 16,384. The S&P 500 was down 32 points to close at 1958. Gold was up $21.50 to trade at $1138 per ounce, while oil was down $2.08 to trade at $44.82 per barrel WTI.
The Fed turned the spotlight on the global situation, so it will be interesting to see where the markets now focus their attention. We’ll see how things look after market participants have the weekend to chew on the Fed’s seeming lack of confidence.
Have a great weekend everyone.