Photo: Wikimedia Commons
Today was all about Fedapalooza, and the Fed delivered!But first, the scoreboard:
S&P 500: +8.04
And now, the top stories:
- It was all very quiet overnight, and in the early going. Japan had a big day, even though S&P downgraded the outlook. Once again, markets completely ignored a ratings agency’s negative commentary, which is no surprise.
- Europe was fairly uneventful, although short-term yields continue to widen. 2-year Greek debt now offers a yield above 25%! Unreal.
- In the US it was all Fed anticipation. Earnings weren’t as eventful today as they were yesterday. One interesting thing on that front, however, is that Amazon erased its losses despite its huge miss. That’s a sure sign of bullishness.
- One sidenote: Pre-bell, Obama released his long-form birth certificate. It was not a market-moving event.
- Then at 12:30 we got the FOMC announcement. It didn’t really contain much of anything new, just that QE would come to an end as scheduled, and that there were a few more concerns about inflation than there were previously. The growth outlook was a little more subdued. Stocks rose on the news, and gold and silver began to take off.
- Then at 2:15, we got the press conference and that’s when the fun began. The general consensus is that it was dovish (recap here). Stocks rallied, gold and silver really rallied. Oil ran up (reversing an earlier dive thanks to high inventories). The interpretation of the day. The tap is open! Risk on!
- For more on Bernanke’s big day, see here >