Did the Fed Decision Weaken the Bull Market?
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What’s in Today’s Report:
- Four Reasons the Fed Decision Caused Such a Big Selloff
- Did the Fed Decision Weaken the Bull Market?
Futures are seeing a bounce following yesterday’s steep selloff despite more negative news overnight.
Politically, government shutdown risks spiked on Thursday after support for the stop-gap funding bill collapsed and a government shutdown on Friday is becoming more likely.
On earnings, Micron (MU) posted disappointing guidance and the stock is down –15% pre-open.
Today is another busy day of economic data and policy decisions. The Bank of England has a rate decision (E: 25 bps cut) while there are numerous U.S. economic reports including, in order of importance, Jobless Claims (E: 232K), Philly Fed (E: 2.5), Final Q3 GDP (E: 2.8%) and Existing Home Sales (E: 4.05 million). The market needs Goldilocks data to help it hold this early bounce and any data that’s “Too Hot” (meaning much stronger than expected) will only increase hawkish Fed worries, push yields higher and likely hit stocks, again.
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