The Fed’s rate hike may have been as good as nailed on yesterday but arguably, it was the weight of conviction of yet another quarter point being added in December that truly rocked the market. The DOW slumped by over 200 points from session highs and futures prices suggest that the downward trajectory will remain in play as Thursday’s session gets underway.
Ahead of the open we have some key data releases including the trade balance figures and durable goods orders. The former should be reflecting the impact of import tariffs, whilst the latter is also tipped to bounce back from the decline posted in July. Failure to deliver here however could accelerate downside pressure on equities as we approach the month and quarter end.
Later in the session, Jerome Powell is set to make some brief comments at a Senate event over the state of the US Economy, although given his conviction at yesterday’s press conference it’s difficult to imagine any market-moving sentiment being communicated today.
Ahead of the open we’re calling the DOW down 15 at 26370 and the S&P down 1 at 2905.
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Too much uncertainly in the world