US Markets React to Fed Meeting
As the Federal Reserve prepares to make a significant announcement, US stocks, treasuries and Bitcoin have seen a shift in expectations around inflation data. With a hawkish drift ahead of the Fed meeting and the economic outlook, investors are hoping for a decrease in interest rates cuts. Chinese markets opened higher but saw continuous selling throughout the day, while US stocks ended lower following a pattern of overnight drifting and a panic–bid at the opening. The Dow Jones Industrial Average saw a decline of 0.8%, while the Nasdaq experienced a 2% decrease. With the Fed meeting looming, investors are closely watching the markets to see how the announcement will affect the US economy.
Market Weakness Erases Gains from Last Friday
Today, US stocks, treasuries, and Bitcoin all nosedived, erasing all of the gains from last Friday‘s market surge. Data from TICk showed very little positive news, and the Nasdaq closed below its 200–day moving average. Market analysts have described the recent surge in the market as a “dash for trash“, and today‘s market weakness is seen as a reload for shorts. Despite the dip, the Nasdaq remains on pace for its best start to a year since 2001. Investors are watching to see how these market movements will affect the US economy.
Unusual Market Activity in January
The bond market saw Treasuries sold across the curve, with the long–end outperforming and the belly underperforming. The US dollar rallied back to the upper end of its recent narrow range, while the price of Bitcoin was hit twice after falling just short of reaching $24,000. Oil prices saw a decline despite concerns over stability in the Middle East, and gold saw modest losses. However, the Ark Innovation ETF (ARKK) remains on pace for its best month ever with a 25% increase, highlighting the unusual market activity seen so far in January. As the Federal Reserve prepares to make its announcement, investors will be closely watching its impact on the current market frenzy.
Stay Up to Date with the Federal Open Market Committee
Are you wondering when the next Federal Open Market Committee (FOMC) meeting is? The FOMC holds eight meetings a year, and the next one is scheduled for Jan. 31 to Feb. 1. At the conclusion of the meeting, the FOMC releases its monetary policy decision at 2 p.m. Eastern time, followed by a press conference with the Fed Chairman Jerome H. Powell at 2:30 p.m. Market participants often pay close attention to the press conference, as the FOMC statement on the interest rate decision can often hold even greater significance than the official policy statement. Stay up to date with the FOMC and make sure you don‘t miss out on the latest news and developments.
